Cargill Deal On N Korea Zinc Fails

Three South Korean trading houses bought about 4,500 tonnes of North Korean zinc in the weeks prior to Pyongyang's cancellation of its zinc-for-wheat barter deal with Cargill Inc,

Seoul metal traders said on Wednesday.

North Korea last week pulled out of the barter deal, worth $4 million on each side, without any explanation.

The deal, finalised in early April, called for the US grains giant to swap 20,000 tonnes of wheat for 4,000 tonnes of North Korean zinc.

Trading sources in Seoul said North Korea probably was unable to honour the barter contract because it did not have enough refined zinc available following its recent sales to three South Korean firms.

 

The three firms were LG International Corp, Tong Yang Global Corp and Taihan Sugar Corp, sources said.

They said the North exploited rising world zinc prices to meet immediate cash requirements.