Sun Metals zinc refinery workers ‘concerned and worried’ about hostile takeover attempt

Sun Metals zinc refinery workers are ‘concerned and worried’ about a hostile takeover attempt, which could risk their safety and future careers. See who has backed their cause.

Mundingburra MP Les Walker and former Townsville mayor Jenny Hill, joined Sun Metals' Simon Sleigh and concerned zinc refinery workers to fight the hostile takeover. Picture: Leighton Smith.

North Queenslanders are being urged to “maintain the rage” about the hostile takeover of Sun Metals zinc refinery, which could imperil safety, future investment, and careers of hundreds of local workers.

News broke on Tuesday about South Korean zinc producer Young Poong and private equity fund MBK Partners launching a $1.5 billion tender offer for a 40 per cent stake in Korea Zinc, the owner of Sun Metals and its sister company Ark Energy.

Korea Zinc has committed to powering its global operations from 100 per cent renewable electricity by 2050, with Ark Energy poised to deliver Australia’s largest green energy hydrogen hub in Townsville.

Annastacia Palaszczuk has thrown her weight behind Sun Metals.

Smart Energy Councils International Ambassador Annastacia Palaszczuk. Picture: David Clark

Former premier Annastacia Palaszczuk on Saturday posted to Facebook throwing her support behind Mr Choi and called for “common sense” to prevail.

“Yun Choi has been a partner with the people of Townsville, and the Queensland Government. There is a lot at stake in the current takeover proposed for Korea Zinc,” she wrote.

“As an Ambassador for the Smart Energy Council, I know how important Ark Energy’s investment pipeline in hydrogen, solar and wind renewable energy are for Australia’s regional economy.

“I hope some common sense can prevail in this takeover, and Yun’s leadership on renewable energy can be maintained.”

The company also has several wind and solar farms across Australia, including nine in North Queensland.

Sun Metals chief financial officer and Ark Energy chief executive Michael Choi told the Townsville Bulletin the tender offer was “seriously concerning”, and could undo the decades of safety standards improvement and the companies’ renewables and hydrogen transition efforts.

Ms Palaszczuk joins former Townsville Mayor Jenny Hill and Townsville Enterprise chief executive Claudia Brumme-Smith who have urged the federal government and the foreign investment review board to block the bid.

“Just last month, the Young Poong CEO and another senior executive from the company were arrested after a series of workplace injuries and fatalities related to safety failures at their sites,” Ms Hill said.

Sun Metals director of finance and business development Simon Sleigh. Picture: Leighton Smith.

“This year alone there have been three deaths due to lethal gas exposure and heatstroke. “It is frankly terrifying to think an outfit like this might gain control of any Australian company, let alone the Sun Metal refinery, which has been employing Townsville locals and contributing to the local community since 1996.” Sun Metals is Australia’s largest zinc refinery, employing about 600 workers.

With the memory of the disastrous Queensland Nickel Refinery (QNI) collapse still fresh from their time in Townsville City Council, former Townsville mayor Jenny Hill and Mundingburra MP Les Walker threw their support behind Sun Metals and its workers on Thursday.

Sun Metals director of finance and business development Simon Sleigh said their whole workforce of 600 staff was “concerned and worried” about the takeover bid.

“The main key thing is uncertainty. (Our) current Korean management has really grown the business and invested and provided more jobs, not just in Townsville, but across Australia, and we want to maintain that and keep growing this business,” Mr Sleigh said.

“I would like to see the (federal) government intervene and pretty much force … the Korean government to prevent a takeover like this.”

Mr Walker regarded job security and safety as “paramount”.

“What Sun Metals do here for Townsville demonstrates safety, stability and strong investment and … over 25 years of good, strong relationships,” Mr Walker said.

“This is a leading zinc refinery, and they are the first in the world to produce green zinc … (and) we’re soon to see the hydrogen come online here on site.

Mundingburra MP Les Walker didn't want to see a repeat of what happened to Queensland Nickel Refinery workers. Picture: Leighton Smith.

“We cannot afford to have a takeover where they strip the company back to the bare bones to make it more profitable and then flog it off to the highest bidder.”

He spoke with Deputy Premier Cameron Dick, who “made strong requests in security for this operation here in Townsville” with Federal Treasurer Jim Chalmers.

While it was still early days for the federal government to act, Mr Walker said “we want to maintain the rage … (and) want to maintain that support for the workforce”.

Revealing that she was contacted by Sun Metal’s owners because they had no relationship with the new “inwardly focused” Townsville City Council, Mrs Hill worried who would “pay the piper” at the end of the hostile takeover.

Dark clouds hang over Sun Metals zinc refinery as Mundingburra MP Les Walker, former mayor Jenny Hill, and Sun Metals' Simon Sleigh rail against a hostile takeover. Picture: Leighton Smith.

“We don’t just need to talk to the federal government. We need someone to go to the Foreign Investment Review Board, … (and) to talk to the Korean ambassador, because the company that’s looking to take over does not have a good track record in Korea,” Mrs Hill said.

“If they can’t even behave in their own country, what the hell are they going to do here?

“We can only stop this now. It will be very difficult if they do take over to try and keep them out. They do not have a good track record (and) we do not want them in this town.”

A Townsville City Council spokeswoman said the council remained committed to growing Townsville as a hub for green industries to future-proof employment opportunities for the city’s growing population.

“Council recognises the significant contribution Sun Metals makes to the North Queensland economy and its provision of local jobs and will continue conversations with Sun Metals about the future of the refinery,” she said.

Mr Chalmers was contacted for comment.

Townsville Bulletin reporter Leighton Smith is married to Labor’s candidate for Herbert Edwina Andrew.

Originally published as Sun Metals zinc refinery workers ‘concerned and worried’ about hostile takeover attempt