China's Tianqi Lithium to appeal after court orders it to pay Australian contractor

MSP Steel & Power

10/03/2021 14:55

March 10 (Reuters) - China's Tianqi Lithium Corp  002466.SZ 
said on Wednesday it would appeal against a court ruling
ordering it to pay A$38.9 million ($30 million) in arrears to
the main contractor on its stalled lithium processing plant in
Australia.
    Tianqi, one of the world's biggest producers of lithium
chemicals used in electric vehicle batteries, said in an
exchange filing the Supreme Court of Western Australia had given
it until March 15 to pay Perth-based MSP Engineering the money,
which includes a principal amount and interest. 
    MSP was appointed lead contractor on the Kwinana processing
plant, designed to make battery-grade lithium hydroxide.
    The facility was heralded as the largest of its kind before
commissioning of its 24,000 tonnes per year first phase was
halted a year ago as Tianqi flagged liquidity problems due to
plunging lithium prices.  urn:newsml:reuters.com:*:nL4N2BF0DE
    The company has since been locked in a legal dispute with
MSP over moneys owed. The Australian Financial Review reported
on Wednesday that MSP had shrunk to a staff of four from 400
employees and subcontractors previously as it awaited payment.  
 
    MSP did not immediately respond to a request for comment
outside normal business hours.
    Debt-laden Tianqi in December secured a strategic investor
in its Kwinana plant and Greenbushes lithium mine in the shape
of IGO Ltd  IGO.AX , paving the way for an extension on $3
billion of loans, while resurgent lithium prices are also giving
the company a financial boost.  urn:newsml:reuters.com:*:nL4N2IO4GE
    But Tianqi warned in the filing the ruling could have an
adverse affect on liquidity and the Kwinana plant.
    The facility will likely commence operations by the fourth
quarter of 2021, Daiwa Capital Markets said in a January note,
citing Tianqi management remarks at a conference.
    Tianqi did not immediately respond to a request for comment
on the intended launch date.
    ($1 = 1.2932 Australian dollars)

 (Reporting by Tom Daly. Editing by Mark Potter)
 ((tom.daly@thomsonreuters.com; +86 10 5669 2119;))