Gina Rinehart Lithium Power Play: In a strategic maneuver that echoes her recent success as Liontown Resources’ largest shareholder, billionaire Gina Rinehart is once again making waves in the world of lithium. This time, her target is West Australian lithium hopeful Azure Minerals, and her tactics are creating ripples across the industry.
Rinehart has been quietly accumulating shares in Azure, putting a dent in Chilean giant Sociedad Química y Minera’s (SQM) hopes of acquiring full ownership of Azure. Her previous move thwarted a $6.6 billion takeover bid by US lithium giant Albemarle. The terms of SQM’s deal with Azure stipulate that if any single shareholder accumulates a 19% stake, the agreement is off. However, SQM might opt for an off-market takeover, potentially partnering with Rinehart rather than achieving full control.
By Thursday afternoon, Rinehart had already secured 15.4% of Azure’s shares, causing the stock to surge by 43% to $3.49, with approximately 80 million shares changing hands. Rinehart’s new corporate entity, Hanrine Future Metals, staffed by her trusted associates, has made these strategic acquisitions.
However, the deal faces challenges beyond Rinehart’s efforts. The Australian government’s Foreign Investment Review Board (FIRB) could pose regulatory hurdles, considering China’s significant presence in the lithium sector. Tianqi Lithium, China’s largest lithium producer, owns a 23% stake in SQM. FIRB has previously blocked deals linked to Chinese investments in the lithium sector, reflecting a broader trend of caution.
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Another SQM shareholder, billionaire Julio Ponce Lerou, former son-in-law of Chilean dictator Augusto Pinochet and known as the “lithium king,” leads a group that owns a 25% stake in SQM.
While Rinehart aims for a substantial stake, Azure revealed that over 50% of shareholders support SQM’s deal. SQM is keen to expand its Australian operations, diversifying beyond Chile and partnering with Wesfarmers on lithium projects.
Azure’s managing director, Tony Rovira, emphasized the potential of the Andover project, although it comes with considerable risks, emphasizing the time, cost, and uncertainties associated with developing such a project.
The frenzied push to acquire lithium assets in Western Australia is driven by what Pilbara Minerals boss Dale Henderson calls “a fear of missing out.” It’s a reflection of the long-term outlook for the lithium industry, although Henderson wonders if there might be a touch of FOMO fear of missing out in the mix. The industry is evolving rapidly, and stakeholders are eagerly watching how it all plays out.
In the ever-evolving lithium market, Rinehart’s strategic moves are reshaping the landscape, leaving many speculating about the future of this critical resource.
Our Reader’s Queries
Did Rinehart join Vulcan Lithium sell down?
Billionaire Gina Rinehart has made a significant sell-down of shares in Vulcan Energy, the lithium aspirant. The market filing reveals that Rinehart sold over $10 million worth of shares, providing the first insight into her perspective on the high-profile activist campaign against the company.
What company did Gina Rinehart just buy?
The acquisition of Driza-Bone by mining magnate Gina Rinehart is a significant move that will benefit not only the iconic brand but also Australia as a whole. With this investment, the brand can now expand internationally on a grand scale, which is a positive development for Akubra. Rinehart’s purchase of yet another iconic brand is a testament to her commitment to investing in Australian businesses and promoting their growth. This move is sure to have a positive impact on the country’s economy and further solidify Rinehart’s position as one of the country’s richest people.