An Australian mining company with links to China has been subject to a state government inquiry for selling lithium around 70 percent below the current market prices despite being under administration.
Alita Resources, which operates the Bald Hill lithium mine in Western Australia via its subsidiary Lithco, is expected to export 150,000 tonnes of lithium concentrate to China in 2023, The Australian reported.
However, the total selling price only amounts to around US$300 million ($453 million), which is far below the current market price of US$1.1 billion.
The Controversial Contract
According to contract documents seen by The Australian, before resuming production in 2022, Alita entered into a five-year sales agreement with a Hong Kong-registered company, which required it to ship lithium concentrate directly to China….