Despite softer prices, and restrictions on ownership of critical minerals, some of the original backers of local developments are now seeing windfall returns.
China’s mining giants have extracted at least $2.5 billion from local lithium operations – in the form of dividends and share sales – over the past year, even though some of those investments would be unlikely now amid tighter restrictions on the sector.
Strong lithium prices in that period handsomely rewarded Tianqi and Ganfeng, the earliest foreign investors in Australia’s lithium industry and large shareholders in the country’s two biggest mines, Greenbushes and Mount Marion respectively.Since then, the federal government has tightened rules on investment into the battery metals sector.
Ganfeng separately owns a 5.74 per cent stake in the Pilgangoora spodumene mine, approximately 120 kilometres from Port Hedland in the Pilbara, through its shareholding of ASX-listed Pilbara Minerals. Pilbara paid out a total dividend ofthat secured the biggest windfall from Pilbara Minerals, selling an $856 million stake in the company at $4.10 per share. It acquired those shares at just 30¢ in 2019.
It is uncertain whether deals like Ganfeng’s purchase of a stake in Mount Marion or Tianqi’s ownership of Greenbushes would be approved by the Foreign Investment Review board in the current climate. Australia and the US have become increasingly concerned about the stranglehold Chinese refiners and miners have on battery metals – and other resources critical to the transition away from fossil fuels – and have begun to put in place restrictions preventing the sale of mines.
Last year, FIRB prevented Astroid, a company with Chinese links, from taking control of one of Australia’s only in-production lithium mines – Bald Hill – owned by Alita Resources.FIRB is now considering whether to let Tianqi gain another foothold in a large Australian lithium mine. Tianqi owns 23 per cent of Chile’s Sociedad Química y Minera de Chile, which has made a $1.7 billion bid with Gina Rinehart for Azure Minerals –which owns the Andover lithium plot in the West Pilbara – for $1.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australian Share Market Set for Subdued Friday Despite Wall Street's RecordsThe Australian share market is expected to have a subdued Friday despite Wall Street's record-breaking performance. Reddit also makes its market debut with a significant increase in share price. Read live updates on the major ASX indices and follow the day's financial news and insights from our business reporters.
Read more »
Penny Wong has 'frank' discussion over death sentence for Australian writer in meeting with Chinese counterparWong met with her Chinese counterpart, Foreign Minister Wang Yi, in Canberra today.
Read more »
Australian coal mining company plans to extend coal hub despite falling pricesNew Hope, an Australian coal mining company, plans to extend its Bengalla coal hub beyond 2037, despite falling prices for coal. The company believes that nuclear power is the only realistic chance for achieving net zero emissions and intends to ask the NSW government for permission to expand coal output.
Read more »
Australian Government Receives 87 Applications for New Pharmacies Despite Warnings of ClosuresThe Australian government received 87 applications to open new pharmacies in the months after the announcement of 60-day prescriptions, despite warnings the change could lead to mass closures. Lobby group, which is meeting on the Gold Coast with Peter Dutton giving the keynote address, warned in 2023 that hundreds of pharmacies would close. Dutton will deliver the keynote address on Friday at the annual Australian Pharmacy Professional Conference, organised by the Pharmacy Guild, being held from 14-17 March on the Gold Coast
Read more »
Australian household spending drops in February despite big boost from Taylor Swift tourAustralian households continued their economic cutback in February despite a certain pop megastar driving a huge increase in spending at music festivals and event venues.
Read more »
Property prices: Chinese owners forced to sell Australian investments as rates, economic slowdown biteSqueezed by higher interest rates overseas and a cash crunch at home, Chinese investors are putting up “for sale” signs in Australia.
Read more »