- IGO (IGO) satisfies key regulatory requirements for the internal restructure of Tianqi Lithium’s Australasian arm
- The reshuffle is one of the conditions precedent for IGO to form a new lithium joint venture (JV) with Tianqi
- In the hope there will be no tax implications as a result of the transaction, IGO has agreed to share any unforeseen tax liability with Tianqi in proportion to its 49 per cent interest in the JV
- The companies are aiming to complete the transaction by the end of June
- IGO shares closed at $7.52 on June 22
IGO (IGO) has satisfied key regulatory requirements for the internal restructure of Tianqi Lithium’s Australasian arm.
The reshuffle is one of the conditions precedent for IGO to form a new lithium joint venture (JV) with Tianqi.
Both companies have received Australian foreign investment approval of the restructure, as required, as well as notice from the Australian Taxation Office (ATO) confirming the tax migration of the JV entity, Tianqi Lithium Energy Australia (TLEA), to Australia.
A further aspect of the restructure is Tianqi’s informal engagement with the ATO to confirm the companies’ view that there will be no tax implications as result of the move.
Although this engagement process is still ongoing, in the interim the parties have agreed to proceed to completion on the basis that if there was an unforeseen tax outcome, IGO would share the tax liability with Tianqi in proportion to the company’s 49 per cent stake in the JV.
IGO Managing Director and CEO Peter Bradford said of the milestone: “As a priority, the joint venture will initially be focussed on the commissioning of train one at the Kwinana Lithium Hydroxide Refinery, as well as working with our partner, Albemarle, on the expansion opportunities at the world class Greenbushes Lithium Mine.
“Demand for high-quality spodumene and lithium hydroxide has increased significantly over recent months, promising strong returns to our shareholders as this trend, driven by global decarbonisation and electric vehicle demand, continues into the future.”
The companies are aiming to complete the transaction by the end of June, once the remaining steps of the internal restructure have been completed.
IGO shares were trading at $7.52 each at market close on June 22.