It’s also worth considering the opening subject of the announcement of “withdrawal”.
Yibin were given the opportunity to withdraw based on advice rather than the focus be rejection of their application. This is also diplomatic. CATL is in bed with CCP elite.
Just recently thanks to my HKTD’s many LCD screens plastered in his taxi, he reminds me that many games are going on :
https://www.automobil-industrie.vogel.de/catl-nutzt-die-krise-fuer-aggressive-expansion-a-926329/
And, well PLS we’re lucky to get that $60mil from CATL don’t you think?
Even so this at bottom Treasury rejection is about “jobs for Australians”, cronyism; liberals lobbying each other to be ‘illiberal’, Yibin being ‘persuaded’ to find a WA lithium partner¿, and basic loose assumptions that AVZ will dominate and make frangible the prospects for WA lithium, it’s odd because if AVZ wee slowed down then Congolese would just take it back.
All that doesn’t sound good for shareholders but, and so I feel this is about where capital is invested in the ASX. It’s “market manipulation” as ASIC might assume.
Even so, the DFS is out, and that is another catalyst and opens up the way for increased competitiveness as Nigel suggests in the announcement.
So the quoted phrasing by AVZ may be a kind of diplomatic cover up from Treasury to ‘dress it’ about protecting the industry from the scale of ambition of AVZ. But that’s all 2 years away, which leads me to think, this now erstwhile investment could well be disliked by potential suitors; how far reaching does FIRB consult? Head of the Board is a complete spook. Who knows what he has at hand on Chinese ambition. As know it runs deep and the Vogel link above says that running hot.
Start here to acquire a feel:
https://firb.gov.au/about-firb
In any case the reasons provided by Feral Government as quoted is plain stupidity as you don’t make AVZ more fragile to secure the growth opportunities of the sector in Australia. In fact you bring the whole company closer to the clutches of CATL et al.
Instead, this is really about allowing Chinese to save face as they could likely still invest an amount but less than 11% and probably no board seat. And that’s partly why it was rejected, ultimately whether Huayou or Yibin, CATL has the political power to make it happen they own Manono by the time lithium sulphate is happening somewhere for AVZ.
It’s not hard fo see the history of CATL and Manono, the French ministry made rather candid apprehensions of the situation (including Huayou).
So whether you think it’s protecting WA lithium or hiding intention from Beijing, or both, fact is AVZ is free of increasing interest by Chinese interest which frees up the way to make AVZ more tasty.
Something will happen shortly in my view now the DFS is out just in time. A bit coincidental no?
what was I thinking Michael.
