By Tom Daly Dec 8 (Reuters) - Debt-laden Tianqi Lithium has
By Tom Daly
Dec 8 (Reuters) – Debt-laden Tianqi Lithium has secured a lifeline from Perth-based nickel and gold miner IGO Ltd, which can make investments $1.four billion within the unit that controls Greenbushes, the world’s largest hard-rock lithium mine.
China’s Tianqi, one of many greatest producers of lithium chemical compounds utilized in electric-vehicle batteries, was attributable to make a$1.88 billion mortgage compensation by the top of November however secured a one-month extension, shopping for it time.
On Tuesday, Tianqi 002466.SZ stated in a submitting that IGO Lithium Holdings would take a 49% stake in Tianqi Lithium Vitality Australia (TLEA), with Tianqi retaining management with 51%.
That offers IGO 24.99% in Greenbushes plus 49% in Tianqi’s suspended Kwinana lithium processing plant, each of that are in Western Australia, a supply with information of the deal stated.
The Chinese language firm stated it deliberate to make use of the proceeds largely to repay $1.2 billion of the principal on a mortgage used to purchase a stake in Chile’s SQM SQMA.SN in 2018, in addition to curiosity.
Following the settlement with IGO IGO.AX, Tianqi stated it deliberate to increase the mortgage compensation deadline to Nov. 25, 2022.
Tianqi additionally stated its chairman Jiang Weiping had agreed to supply a $117 million shareholder mortgage to the corporate. That mortgage, with a time period of not more than 5 years and rate of interest no increased than 5%, will be drawn down from Feb. 1, it added.
The IGO deal, which wants approval from Australia’s International Funding Evaluation Board, shall be put to Tianqi shareholders on Jan. 5, Tianqi stated in a separate submitting.
U.S.-based Albemarle Corp ALB.N, which holds 49% within the Talison Lithium three way partnership that operates Greenbushes to TLEA’s 51%, stated the transaction “seems to be structured in a means that will not set off Albemarle’s proper of first refusal.”
“In that case, we consider the construction of the Talison JV would stay unchanged,” spokeswoman Hailey Quinn stated, including that the corporate would consider additional as soon as full particulars are identified.
Albemarle beforehand stated it was eager to take full management of Greenbushes ought to a Tianqi sale set off its preemption rights.
Indicators of recoveryhttps://tmsnrt.rs/33T450N
(Reporting by Tom Daly; further reporting by Meg Shen, Twinnie Siu and Ernest Scheyder; Enhancing by Alexander Smith, Kirsten Donovan and Mark Potter)
(([email protected]; +86 10 5669 2119;))
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.