The global lithium urges the action of the Australian government on the alleged attempt at China acquisition

The global lithium resources of the Australian miner have appealed to the Australian government to intervene in a possible attempt to acquire its Maná Lithium project in Western Australia by Chinese investors.

This movement occurs after the Australian acquisition panel refused to review the company’s concerns about potentially illegal shareholders associations, he reported Reuters.

The situation presents a challenge for the Australian government, which is promoting critical mineral projects to stimulate economic growth and strengthen security ties with the United States, without striving relations with China, its largest resource client, according to the report .

Global Lithium stopped the development of its Maná lithium project at the end of 2023 due to a recession in the battery material market.

The company urges the Treasurer, advised by the Foreign Investment Review Board, to restrict the influence of the shareholders involved in the next shareholders meeting.

The Global Lithium management, directed by Executive President Ron Mitchell, claimed that director Dianmin Chen is collaborating with foreign investors who have between 30% and 40% of the company’s actions to obtain control over the Board and its main active.

Management has recommended that shareholders oppose the re -election of Chen and the appointment of other directors born in China, as well as a proposal to limit the Board to three members.

Mitchell has raised concerns about unleashed associations among shareholders who can violate Australian acquisition laws.

The main shareholders of Global Lithium include mineral resources and Canmax technologies, this last property of the Chinese billionaire Pei Zhenhua. No company has commented on the dispute.

In addition, the third largest shareholder of Global Lithium, the real estate developer born in China, Liaoliang Zhu, who controls the sincerity group, has expressed interest in joining the Board, emphasizing the importance of focusing on basic lithium assets.

In a presentation of the Australian Stock Exchange dated November 15, 2024, the company said: “Foreign control concerns of the global lithium refer to the circumstances surrounding a potential change of control of the company’s board and the possible consequences for all shareholders.

“These concerns also include the effective control potential of the Manna Lithium de Manna (Manna) project owned by 100% of Global Lithium near Kalgoorlie without making a control transaction or paid the premium.”

The Australian treasure, forced by confidentiality under the Law of Foreign Procurement and Acquisitions of 1975, has not commented on the case.

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