Tianqi Lithium Energy Australia (TLEA) owns 51% of Talison (the company that owns and operates Greenbushes). Albermarle owns the other 49%.
TLEA is a JV between Tianqi and IGO. Tianqi owns 51% of TLEA, IGO 49%.
So you see that by using holding companies, on paper Tianqi appears to have control of Greenbushes despite having a much smaller economic interest than 51%.
What is unmentioned are the partnership agreements. Australia also has pretty strong minority interest laws that would potentially restrict Tianqi from running at a loss for their or China's benefit.
Greenbushes has also previously been under scrutiny by the ATO regarding transfer pricing. You can google the outcome from 2019 IIRC.
Couldn't really understand Dwayne's claims about Tianqi tanking Kwinana on purpose?
Also didn't understand his point about the Australian Government stepping in to prevent miners selling at a loss. It's investors that keep these mines going and the decision to keep trading rightly belongs to the companies, not the government; even if some operators stubbornly refuse to go offline. I guess some of the Lithium operations are still too well funded.
Hope that helps.
PLS Price at posting:
$1.35 Sentiment: Buy Disclosure: Held
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