Townsville Enterprise is seeking federal intervention to safeguard local jobs and a swag of green energy investment after news of a $1.5 billion takeover bid for Sun Metals refinery owner Korea Zinc.
Private equity firm MBK Partners has teamed up with existing shareholder Young Poong in the bid for control of Korea Zinc.
Townsville Enterprise chief executive officer Claudia Brumme-Smith says the Australian Government and the Foreign Investment Review Board must ensure that the long-term viability of local jobs and industries are safeguarded.
Main image: TEL CEO Claudia Brumme-Smith
Ms Brumme-Smith says that in addition to Sun Metals, any changes are likely to impact sister companies Townsville Logistics and Townsville Marine Logistics as well as Ark Energy, which had a proposed $10 billion green energy investment pipeline in the region.
Those groups provided jobs for about 1000 people across the Townsville region through full-time employment and contract/labour opportunities, she says.
“The region still bears the scars from the Queensland Nickel collapse, which left a lasting impact on Townsville North Queensland,” she said.
“The job losses associated with this in 2016 have taken years to recover, and that’s why it’s vital that any takeover protects the livelihoods and economic stability of the communities involved.”
She says Townsville Enterprise hoped that Federal Treasurer Jim Chalmers and Queensland Treasurer Cameron Dick were engaged with their Korean counterparts to ensure that the proposed changes did not impact North Queensland’s project and investment pipeline.
Ark Energy chief executive Michael Choi, who is also the chief financial officer of Sun Metals, told the Australian Financial Review he expected a private equity owner of Korea Zinc would stop investing in long-term projects in renewables and hydrogen and start repatriating dividends from Sun Metals back to Korea.