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Chilean miner SQM's (NYSE:SQM) chairman has challenged what he called the questionable motives of a major shareholder, China's Tianqi Lithium, Reuters reported late Monday, in an escalation of the increasingly public argument over SQM's planned partnership with state copper producer Codelco.
Tianqi, which owns ~20% of SQM (SQM) shares, raised concerns last week over transparency in the talks with Codelco, which is expected to take a 50% plus one share stake in the new joint venture starting in 2025 under a government policy aimed at boosting state control in Chile's lithium industry.
Tianqi CEO Frank Ha emphasized the company's worries over the Codelco deal in comments to Chilean newspaper La Tercera published Saturday, as reported by Reuters: When asked if Tianqi would be interested in bidding for its own contract to exploit lithium from Chile's Atacama salt flat, if SQM's (SQM) deal with Codelco in the area falls through, Ha said Tianqi would be open to "all opportunities that align with the company's strategic vision."
SQM (SQM) Chairman Gonzalo Guerrero issued a statement singling out Ha's remark, claiming it "raises questions about Tianqi's real objectives" just as negotiations with Codelco are nearing a conclusion.
Guerrero also dismissed Tianqi's urging to put the Codelco deal to a shareholders' vote, which he said could potentially give Tianqi veto power, and he questioned the Chinese firm's plans for the board, after Xu Tieying, who held one of three seats nominated by Tianqi, resigned last week without explanation; SQM's (SQM) next board of directors meeting is scheduled for April 25.