Australia's Hancock inches towards blocking stake in Liontown amid Albemarle bid (updated)

Delta Lithium

02/10/2023 24:57

(Adds details and background from paragraph 2 onwards)
       Oct 2 (Reuters) - Australian billionaire Gina Rinehart's
Hancock Prospecting  increased its stake in lithium miner
Liontown Resources  LTR.AX , the company said, moving it closer
to being able to block a $4.3 billion bid by U.S.-based
Albemarle  ALB.N  for Liontown.
    Hancock said on Friday it raised its stake from 10.7% last
month to 12.4%, paying no more than A$3.00 per additional share.
Hancock would be able to block the Albemarle deal with a 15%
position.
    Last month, Liontown accepted Albemarle's revised $4.3
billion bid, or A$3 a share. Albemarle, the world's largest
lithium producer, is seeking to secure supplies of the key
electric vehicle battery metal. The offer is part of a surge of
interest in Australian lithium assets amid the clean energy
transition.
    Hancock said last month it may seek a position on Liontown's
board and could help the company bring its lithium resources to
production.  
    Last week, Liontown raised its capital cost to first
production estimate for its Kathleen Valley lithium project by
6% to A$951 million ($611.4 million) but confirmed it would meet
its target for production to start in mid-2024.
    Hancock said the increased cost estimate underscored the
project's "significant execution, operational ramp-up and market
risks." Hancock said that the actual capital cost for the
project could be in excess of A$1 billion, factoring in
inflation over time. 
    Rinehart, Australia's richest person, owns shares in lithium
companies such as Patriot Battery Metals  PMET.V  and Delta
Lithium  DLI.AX , in line with her recent focus on the sector.
    
($1 = 1.5555 Australian dollars)

 (Reporting by Echha Jain in Bengaluru, additional reporting by
Melanie Burton; Editing by Cynthia Osterman)
 ((Echha.Jain@thomsonreuters.com;))