2024-04-26 00:00:00
Tianqi Lithium announced that they will not sit idly by and will insist that the Codelco-SQM merger be voted on at the shareholders’ meeting. But not only that: he condemned the president of the non-metallic mining company, Gonzalo Guerrero, as failing in his duty of “impartiality and loyalty” to shareholders, saying that “there are several undeclared aspects that are essential to fully understand the impact of this alliance , including the valuation and conditions under which Salar Maricunga will be transferred to Codelco,” he noted.
Earlier – in a statement sent from China – Tianqi Lithium stated that “it has demonstrated a series of actions (on the part of SQM) that it considers contrary to the principles of transparency and fairness that should govern every company.” The firm has formally requested that the alliance operation between SQM and Codelco be submitted to the shareholders’ meeting in accordance with Article 67 of the Companies Act.
“Despite this legitimate request, SQM management has repeatedly refused to convene a meeting for the purpose of voting on this important decision,” the Chinese firm said. He said he will “enforce his rights as a shareholder in all appropriate legal cases.”
“The public statements made by Tianqi Lithium – a direct competitor of SQM – are deplorable and show once once more that the company is and acts as a competitor to SQM”said the president of this company, Gonzalo Guerrero.
Irritation with Guerrero
At the April 24 meeting, Tianqi expressed his annoyance at the statements made by the president of the SQM board, Gonzalo Guerrero, “which he considers to compromise the impartiality and loyalty that the administration owes to all its shareholders.” a public statement that “it is important that senior management follow strict protocols that ensure transparency and respect for the rights of all shareholders.” The contrary, in Tianqi’s opinion, “disqualifies the current president of the board from exercising this function.”
In this regard, Guerrero stated that “the public statements made by Tianqi Lithium – a direct competitor of SQM – are regrettable and show once once more that the company is and acts as a competitor of SQM.”
Despite the internal tension, Guerrero on the board of directors following the regular shareholders’ meeting, which started yesterday, Thursday at 6:00 p.m., was elected president of the board unanimously by the members, the mining company said.
Maricunga in the spotlight
Tianqi charged that it has required “clear explanations regarding the reasons justifying the proposed structure of the alliance operation with Codelco, a structure that appears to be specifically designed to avoid calling a shareholder meeting, as explained by SQM in the extraordinary meeting in December. ” 24 In April last year, SQM Salar will absorb Minera Tarar from Codelco.
For Tianqi, “there is no doubt that the operation involves the disposal of the company’s strategic assets,” so “this operation must be put to a vote at the shareholders’ meeting.”
Tianqi maintained that the way the consultation to the CMF was worded also calls for suspicion “and an apparently explicit intention to avoid a transparent and participatory process that includes minority shareholders”.
Furthermore, the Chinese firm said that the information available “regarding the pact with Codelco is completely insufficient.” In Tianqi’s opinion, “there are still several undeclared aspects critical to fully understanding the impact of this alliance, including the valuation and terms under which Salar Maricunga will be transferred to Codelco.” And within the framework of the agreement, SQM will transfer its mining assets in Maricunga to the state-owned company so that it can develop its lithium project.
SQM to invest $2.44 billion in 2024: 73% to expand lithium production in Chile and Australia
Minera to invest $2,440 million in 2024: 73% to expand lithium production in Chile and Australia
Georges de Bourguignon, nominated by Tianqi, joined the board and Antonio Schneider Chaigneau left. The Chinese company kept Ashley Luke Ozols and Xu Tieying on the table.
SQM will invest $2,440 million in 2024, of which $1,440 million will go to expand lithium production capacity in Chile, while it will allocate $340 million to the facility for the same mineral in Mount Holland in Australia and to exploration in the oceanic country. In addition, it will inject 700 million dollars in iodine and nitrates in Chile, explained the president of the company, Gonzalo Guerrero Yamamoto.
This means that the company will allocate 73% of its capital expenditure (Capex) to lithium, a strategic material for electromobility and the energy transition. Lithium, the chairman of the board commented, represented 70% of the company’s revenue in 2023.
Regarding the agreement with Codelco, Guerrero mentioned at the shareholder meeting the negotiations that took place during 2023 with Codelco within the framework of the national lithium strategy defined by the government, “which sought to ensure that Chile continues to be a relevant player in the global lithium supply by extend our operations beyond the expiration date of the current lease with Corfo del Salar de Atacama.”
Thus, he explained that at the end of last year they signed a non-binding Memorandum of Understanding (MoU) with Codelco for the joint operation and development of the Salar de Atacama in the period 2025 to 2060. “The materialization in the final contracts of the aforementioned agreements, which we hope to achieve during this year, said the president of the board.
On the other hand, Georges de Bourguignon, nominated by Tianqi, joined the board, and Antonio Schneider Chaigneau, who was also nominated by the said Asian firm, left. In addition, the Chinese company maintained the nomination of Ashley Luke Ozols and Xu Tieying, who were elected.
Likewise, Gonzalo Guerrero Yamamoto, Gina Ocqueteau, Patricio Contesse Fica, Hernán Büchi Buc remained at the table and with votes from AFP followed Antonio Gil Nievas.
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