Global Lithium fights alleged Chinese takeover

Australia’s Global Lithium Resources (ASX: GL1) has called on the government to intervene in what it describes as a takeover attempt by Chinese investors targeting its flagship asset, the Manna lithium project.

The West Perth-based developer is seeking government action ahead of a crucial shareholder meeting this week, following the Australian Takeovers Panel’s decision last week to reject Global Lithium’s application to investigate alleged breaches of foreign ownership rules.

The company has raised alarms for months over what it claims is an unlawful alliance among China-linked shareholders attempting to gain control of its Western Australian lithium project. It has specifically accused one of its directors, Dianmin Chen, of collaborating with foreign investors who collectively hold between 30% and 40% of its shares, to orchestrate a board takeover and assume control of the Manna project.

Global Lithium’s management has appealed to Australia’s treasurer to act. The treasurer, advised by the Foreign Investment Review Board, has the authority to compel the shareholders advocating for board changes to reduce their stakes. Additionally, the treasurer could prohibit these shareholders from voting at Thursday’s shareholder meeting. The Western Australia Supreme Court previously highlighted this possibility in a ruling delivered in November.

Shares in Global Lithium Resources closed 2.4% stronger on Monday in Sydney at 22¢ (C20¢), valuing the company at $56.3 million.

Curbing Chinese hold

Global Lithium’s executive chairman, Ron Mitchell, has urged shareholders to oppose motions to reappoint Chen, appoint other Chinese-born directors, and limit the board to three members.

The company halted development of the Manna lithium project late last year, citing a prolonged downturn in the battery raw materials market. Located near Kalgoorlie, the project is regarded as critical to Australia’s broader strategy to retain domestic ownership of key mineral resources.

Manna’s mineral resource estimate sits at 51.6 million tonnes at 1% lithium oxide (Li2O), with 515,000 tonnes of total contained Li2O. Indicated resources are pegged at 32.9 million tonnes with 1.04% Li2O.

This case is part of a broader effort by the Australian government to limit foreign investment in strategic sectors, particularly critical minerals. Canberra signaled that such investments should come from “like-minded” countries—a phrase often interpreted as excluding Chinese entities.

A similar case ended last June with treasurer Jim Chalmers mandating Yuxiao Fund, a Singapore-based investor with ties to China, to sell down its stake in Northern Minerals (ASX: NTU), an Australia-listed rare earths explorer, on national security grounds.