Australian court orders Tianqi Lithium to pay $29 mln to court fund (updated)

MSP Steel & Power

01/04/2021 10:27

(Adds details on court ruling, comments by Tianqi and MSP
Engineering)
    By Melanie Burton
    April 1 (Reuters) - An Australian court on Thursday ordered
China's Tianqi Lithium  002466.SZ  to pay A$38.9 million ($29.43
million) into a court fund, as the firm appeals a disputed
payment for the building of a battery-grade lithium processing
plant in Western Australia. 
    Tianqi, one of the world's biggest producers of lithium
chemicals used in electric vehicle batteries, had refused to pay
 Perth-based MSP Engineering for building a lithium hydroxide
plant, saying the project ran over budget.  urn:newsml:reuters.com:*:nL1N2L909F
    Work on the plant was stalled last year as Tianqi flagged
liquidity problems due to plunging lithium prices. 
    Western Australia's Supreme Court had already ruled that
Tianqi must pay A$38.9 million in arrears, but the company
appealed that decision.
    The state's appeal court said it would stay the ruling while
Tianqi's appeal is heard, but Tianqi must pay the sum to the
court to be held in a trust by April 9.
    MSP Engineering welcomed the decision and "looked forward to
Tianqi complying with this order to pay by April 9," a
spokeswoman said. 
    MSP has had to wind down other business lines to pay its
contractors and subcontractors and has shrunk its staff to four
from 400 employees as it awaits payment. urn:newsml:reuters.com:*:nL1N2L909F  
    Tianqi was pleased by the decision, a spokesman said, and
will continue to pursue MSP under private arbitration as it
focuses on rectifying issues at the plant and moving towards
production.  
    "We expect to award significant rectification contracts
shortly and look forward to producing value added lithium
product here in Australia," Tianqi's spokesman said
    Tianqi's assets include a 51% stake in the Greenbushes
lithium mine and 100% of the Kwinana lithium plant, which was
heralded as the largest of its kind.
    The debt-laden company in December had secured a strategic
investor for 49% of its business, paving the way for a lifeline
extension on $3 billion of loans.  urn:newsml:reuters.com:*:nL4N2IO4GE
    
    

($1 = 1.3219 Australian dollars)
    

 (Reporting by Melanie Burton in Melbourne; Editing by Amy Caren
Daniel)
 ((melanie.burton@thomsonreuters.com
Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging:
melanie.burton.thomsonreuters.com@reuters.net))