Last edited by sabine: Yesterday, 22:00FIRB rejects Austroid...

FIRB rejects Austroid takeover of lithium miner Alita Resources

• EXCLUSIVE
  ByTANSY HARCOURT
  SENIOR REPORTER
• 7:02PM JULY 20, 2023

The Australian Foreign Investment Review Board has rejected a stealth bid by a China-connected company Austroid to take control of one of Australia’s only in-production lithium mines – Bald Hill – owned by Alita Resources.

The knock-back sends a clear message about the Albanese government’s view on foreign ownership of Australian critical minerals companies.

In a notice on the Federal Register of Legislation, Federal Treasurer Jim Chalmers rejected the application by Austroid, which owns all the debt in Alita, from taking the company over via a deed of company arrangement.

It’s been amessy battle for control of the lithium miner, which collapsed in 2019 when prices for the precious mineral, which is critical for making batteries for electric cars, slumped.
Since then lithium prices have surged to more than $US6000 a tonne earlier this year, although they are currently closer to $US4500 as countries and companies have sought to buy the commodity needed to help meet zero emissions targets.
But despite bumper prices, Austroid signed a secret agreement seen by The Australian to sell its lithium at significantly below market rates, at a range from $US800 to $US1500 a tonne for 6 per cent lithium con

In 2019, China Hydrogen Energy (CHEL) purchased the debt in Alita and made an application to the FIRB to take control of the company, but withdrew it in April 2020 when then treasurer Josh Frydenberg indicated he may move to block the deal.

CHEL, which is registered in the Cayman Islands, then sold the same debt to the US-registered Austroid, which shares the same registered director – Mike Que.
Mr Que is also a director at Lithco, an Alita subsidiary now running the Bald Hill mine – which is in turn subject to an investigation as to why it’s selling its lithium to China at dramatically below-market prices.
Mike Que’s mainland China-based father, Que Wenbin, owns a lithium battery and EV manufacturer in China known as Sichuan Western Resources, according to Morningstar.

The decision by the FIRB shows the Albanese government is not afraid to take hard decisions as it navigates trying to improve its fragile relationship with Beijing, alongside Labor’s desire to keep the processing of Australia’s critical minerals onshore.

What will happen next is unclear.
Austroid could not be reached for comment.
However it is likely that the global giants of lithium will be interested in snapping up the debt, as may Chris Ellison’s Mineral Resources.

Austroid is understood to have invested heavily in returning Bald Hill to production, and is now believed to be owed as much as $250m, including the value of the original debt bought from CHEL.

Canaccord, an equity holder in Alita before it was placed in receivership, and Austroid, has told the Supreme Court the company could now be worth about $1bn.

Since Bald Hill restarted production in April 2022, the miner has sold 145,306 tonnes of lithium to the Hong Kong-registered Yihe Cleantech Material Limited, according to customs data. The last shipment was on July 12.

Last edited bysabine:Yesterday, 22:00

FIRB rejects Austroid takeover of lithium miner Alita ResourcesEXCLUSIVEBy TANSY HARCOURTSENIOR REPORTER7:02PM JULY 20, 2023The Australian Foreign Investment Review Board has rejected a stealth bid by a China-connected company Austroid to take control of one of Australia’s only in-production lithium mines – Bald Hill – owned by Alita Resources.The knock-back sends a clear message about the Albanese government’s view on foreign ownership of Australian critical minerals companies.In a notice on the Federal Register of Legislation, Federal Treasurer Jim Chalmers rejected the application by Austroid, which owns all the debt in Alita, from taking the company over via a deed of company arrangement.It’s been a messy battle for control of the lithium miner, which collapsed in 2019 when prices for the precious mineral, which is critical for making batteries for electric cars, slumped.Since then lithium prices have surged to more than $US6000 a tonne earlier this year, although they are currently closer to $US4500 as countries and companies have sought to buy the commodity needed to help meet zero emissions targets.But despite bumper prices, Austroid signed a secret agreement seen by The Australian to sell its lithium at significantly below market rates, at a range from $US800 to $US1500 a tonne for 6 per cent lithium conIn 2019, China Hydrogen Energy (CHEL) purchased the debt in Alita and made an application to the FIRB to take control of the company, but withdrew it in April 2020 when then treasurer Josh Frydenberg indicated he may move to block the deal.CHEL, which is registered in the Cayman Islands, then sold the same debt to the US-registered Austroid, which shares the same registered director – Mike Que.Mr Que is also a director at Lithco, an Alita subsidiary now running the Bald Hill mine – which is in turn subject to an investigation as to why it’s selling its lithium to China at dramatically below-market prices.Mike Que’s mainland China-based father, Que Wenbin, owns a lithium battery and EV manufacturer in China known as Sichuan Western Resources, according to Morningstar.The decision by the FIRB shows the Albanese government is not afraid to take hard decisions as it navigates trying to improve its fragile relationship with Beijing, alongside Labor’s desire to keep the processing of Australia’s critical minerals onshore.What will happen next is unclear.Austroid could not be reached for comment.However it is likely that the global giants of lithium will be interested in snapping up the debt, as may Chris Ellison’s Mineral Resources.Austroid is understood to have invested heavily in returning Bald Hill to production, and is now believed to be owed as much as $250m, including the value of the original debt bought from CHEL.Canaccord, an equity holder in Alita before it was placed in receivership, and Austroid, has told the Supreme Court the company could now be worth about $1bn.Since Bald Hill restarted production in April 2022, the miner has sold 145,306 tonnes of lithium to the Hong Kong-registered Yihe Cleantech Material Limited, according to customs data. The last shipment was on July 12.
Last edited by sabine: Yesterday, 22:00