IGO yet to propose new ‘marriage' or ‘divorce' from Kwinana lithium refinery, according to Tianqi Lithium boss
The claim from Tianqi chief executive Frank Ha on Wednesday comes amid IGO's outspoken desire for Tianqi to close the Kwinana refinery to preserve cash.
Mr Ha likened the joint venture between his Tianqi and IGO as a 'marriage', which is pouring in cash — at Tianqi's discretion — to prop up the refinery.
Mr Ha reiterated the lithium hydroxide refinery would not be mothballed anytime soon, despite IGO's wishes, and said he would like to see more State and Federal Government help for the Chinese chemical manufacturing giant.
Tianqi, which is set to be one of the biggest beneficiaries of the Federal Government's $7 billion production tax credit package for processors of critical minerals, has a 51 per cent stake in the Tianqi Lithium Energy Australia (TLEA) JV with IGO.
The Tianqi-operated TLEA owns the Kwinana refinery outright and holds a 51 per cent interest in the lucrative Greenbushes lithium mine in WA's South West.
IGO has written down its stake in Kwinana to zero and wants Tianqi to close the refinery because a big chunk of TLEA's dividends from Greenbushes are being siphoned into the problematic downstream operation.
Mr Ha on Wednesday said Kwinana was a 'very important part' of Tianqi's 'international strategy'. He also revealed IGO had not asked Tianqi to restructure TLEA for a reduced capital expenditure exposure to the refinery.
'They (IGO) didn't say to me anything that they want to divorce,' he said.
'If this is the true intention, they've never said this to me . . . I am open to any of their proposals that we can discuss, but until now that we have not had any official proposals from them.
'If IGO does not want to spend money . . . they have to, as long as they are the partner. If they do not want to be the partner, they have to come to me, I'm open.'
IGO declined to comment.
Mr Ha said the TLEA JV was a 'whole package', meaning IGO would have to reduce its Greenbushes stake to reduce exposure to Kwinana.
The Tianqi boss declined to entertain suggestions the company was open to taking on another partner in TLEA to potentially replace IGO.
'(A joint venture) is like a marriage and it is immoral, against my rules, that I start to find a new partner before it's finished,' Mr Ha quipped.
He likened Kwinana to Tianqi and IGO's 'child' that the two parties both had responsibility for.
Mr Ha also said he was appreciative of the State and Federal Government support so far but believes there is room for more.
'If the government can grant us (status) as a pioneer or first mover in this important downstream (lithium) industry in WA, that we can be considered for a fast track of the application (for government incentives or subsidies) I will be more than happy with that.'
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