The Korea Times
The sale of the El Boleo copper mine in Mexico for a nominal $1 is more than a failed overseas investment. It is a stark indictment of how Korea has managed public resources, corporate governance and long-term economic strategy. Roughly $2 billion in public funds, channeled into El Boleo through the state-run Korea Mine Rehabilitation and Mineral Resources Corp. (KOMIR) and its predecessor, has effectively evaporated. Years after the project’s collapse became evident, accountability remains elusive. The origins of this debacle trace back to the late 2000s under the Lee Myung-bak administration, when “resource diplomacy” became a central pillar of national policy. State-backed enterprises were encouraged, if not pressured, to secure overseas energy and mineral assets in pursuit of resource security. In that climate, due diligence often gave way to political expediency. The Boleo project, launched in the early 2010s, proceeded despite questions about inflated reserve estimates, low ore grades and high production costs. By 2014, Korea had invested heavily in mining rights as well a
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