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| Global Lithium Resources |
As a pivotal shareholder meeting approaches, Global Lithium Resources (ASX: GL1) is urging Australian authorities to block an alleged foreign takeover attempt, highlighting growing tensions over foreign investment in Australia’s critical minerals sector.
Foreign Investment Controversy Sparks Government Intervention Calls
Global Lithium Resources (GL1) has accused a coalition of China-linked investors of attempting an unlawful takeover of its Manna lithium project in Western Australia. The company claims that foreign investors, allegedly holding between 30% and 40% of its shares, are strategically pushing for boardroom changes to seize control of the lithium asset.
The dispute has escalated as the Australian Takeovers Panel declined to investigate alleged breaches of foreign ownership laws, leaving Global Lithium without immediate regulatory support.
The company has singled out Dianmin Chen, a current director, for allegedly collaborating with foreign investors to orchestrate a board takeover. In response, Global Lithium’s executive chairman, Ron Mitchell, is urging shareholders to reject motions that could strengthen foreign influence, including proposals to restructure the board and appoint additional Chinese-born directors.
Government’s Role and Potential Intervention
Global Lithium has directly appealed to Australian Treasurer Jim Chalmers for intervention. The Foreign Investment Review Board (FIRB), which advises the government on foreign ownership concerns, could take measures such as:
- Forcing foreign investors to reduce their stakes
- Restricting their voting rights in the upcoming shareholder meeting
A Western Australia Supreme Court ruling in November 2024 indicated that such actions could be legally justified, especially when national security is at risk. The Australian government has signaled increasing scrutiny of foreign ownership in critical mineral projects, particularly those linked to China, reinforcing the country’s stance on strategic resource independence.
Manna Lithium Project and Strategic Concerns
The Manna lithium project, located near Kalgoorlie, Western Australia, is a crucial part of Australia’s lithium supply chain. However, its development has been stalled since late 2023 due to downturns in the battery materials market. The project holds a mineral resource estimate of 51.6 million tonnes (Mt) at 1% lithium oxide (Li₂O), with 515,000 tonnes of contained Li₂O.
The dispute over Global Lithium echoes a similar foreign ownership crackdown in June 2024, when Treasurer Chalmers ordered Singapore-based Yuxiao Fund to sell down its stake in Northern Minerals (ASX: NTU) due to national security concerns. This move underscores Australia’s intensified efforts to limit foreign influence over its critical minerals sector.
With the crucial shareholder meeting scheduled for this Thursday, the outcome will determine whether Global Lithium maintains control or if the alleged China-linked investors reshape the board. The Australian government now faces mounting pressure to either intervene or tighten foreign investment regulations further.
