Tianqi Slams Chile Regulator, Weighs Legal Options in SQM Deal

In a connection distributed successful Chile connected Friday, Tianqi slammed the regulator’s determination implicit a planned tie-up betwixt SQM and Codelco, saying the rationale down letting it proceed without a ballot weakens capitalist assurance successful the Chilean regulatory framework.

In a uncommon nationalist disapproval of authorities by a Chinese firm, Tianqi is looking to asseverate its rights arsenic a 22% shareholder successful SQM and arsenic an planetary investor. Growing tensions betwixt SQM and its second-largest shareholder are creating an further obstacle to Chilean President Gabriel Boric’s caller public-private exemplary for the lithium industry.

At involvement is simply a woody that would let SQM to ramp up accumulation of the cardinal constituent successful electric-vehicle batteries. Without it, SQM whitethorn person to upwind down mining operations erstwhile its existent declaration expires successful 2030.

SQM and Tianqi person questioned each other’s existent motivations successful the spat. Tianqi’s frustrations look to beryllium anchored successful boardroom restrictions it has endured arsenic a information of its acquisition of the SQM involvement six years agone for $4 billion. Formally known arsenic Soc. Quimica & Minera de Chile SA, SQM is the world’s No. 2 lithium producer. Its apical shareholder is Julio Ponce, the erstwhile son-in-law of dictator Augusto Pinochet.

In comments circulated locally connected Friday, Tianqi said the regulator’s determination that the woody doesn’t represent a divestment “openly contradicts the tone of the instrumentality that seeks to support investors." The attack compromises transparency and equity successful firm operations, it wrote.

Under presumption of the woody announced May 31, SQM volition relinquish a bulk involvement successful its prized Atacama brackish level excavation to Codelco successful speech for 3 much decades of operations. The tie-up is portion of Boric’s docket to person much authorities power successful cardinal assets of the artillery metallic portion boosting output successful the displacement distant from fossil fuels.

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Published: 22 Jun 2024, 12:43 AM IST