South Korea's Youngpoong Corp is considering various options, including legal appeals, against a government order to shut down its Seokpo zinc smelter for two months, sources said on Wednesday.
The country's authorities ordered the shut down of the 400,000-tonne smelter in Gyeongsangbuk-do province from April 1 to May 31 for violation of the Water Environment Conservation Act, the company said in a filing on Monday.
"The company is considering various measures including legal procedures to get through this issue," a spokesman at Youngpoong told Reuters, requesting not to be named due to the sensitivity of the matter.
"We will try to figure things out with the local government, but we still have a few months to work it out. We're confident we haven't violated any rules," the person said.
Another Youngpoong official, who cannot be named as the person is not authorised to speak to media, said the company is considering a legal appeal of the order.
An official at the Gyeongsangbuk-do provincial government, which issued the order, said they are not yet aware of any legal actions from the company, adding that the company can request for a review of the order or go to a local court.
The official declined to be named as the issue is ongoing and because the person is not authorised to speak to the media.
"If it (the smelter) closes, then it is going to have a big impact. But I'm not sure how serious it actually is," said a Singapore-based metal trader.
(Reporting by Heekyong Yang in Seoul and Mai Nguyen in Hanoi; Editing by Shailesh Kuber)
