Seoul: South Korea's state-run resource developer announced the sale of its stake in a Mexican mine for a nominal $2 as it seeks to stem continued financial losses. The Korea Mine Rehabilitation and Mineral Resources Corp. (KOMIR) revealed in a regulatory filing that its substantial investment of approximately 3.1 billion won (US$2.09 million) in the Boleo mine was divested to both a Mexican and an American company, with each acquiring the stake for $1.

According to Yonhap News Agency, the sale was executed at this nominal price to mitigate potential tax risks that could arise from transferring the assets without charge. The buying entities have consented to take on all outstanding debt related to the mine. The Boleo mine, a significant copper-cobalt-zinc-manganese deposit in Mexico, boasts an estimated 150 million tons of reserves and a projected mining lifespan of at least 15 years. The site is equipped with a processing plant, a dedicated port, and a desalination facility.

The initiative initially appeared promising when South Korea began its investment in 2008. However, the project has faced substantial operational hurdles, leading to increased losses. Issues such as challenging geological conditions, high operational costs, and geopolitical factors within Mexico have contributed to the mine's underperformance.

In 2022, a government committee approved the sale of KOMIR's entire 94.21 percent stake in the mine as a measure to avert further financial losses. This decision came after three prior attempts to divest the asset were unsuccessful.