Global Lithium Resources is urging the Australian government to intervene in what it describes as a clandestine takeover attempt by Chinese investors targeting its prized Manna lithium project in Western Australia.

Global Lithium has been raising concerns for months about what it claims is an unlawful alliance among China-linked shareholders seeking to gain control of the Manna project. The company alleges that one of its own directors, Dianmin Chen, is colluding with foreign investors who collectively hold between 30% and 40% of its shares. Global Lithium claims this group is orchestrating a board takeover to ultimately seize control of the strategically important Manna project.

With the shareholder meeting looming, Global Lithium has made a direct appeal to the Australian treasurer. The treasurer, advised by the Foreign Investment Review Board, possesses the power to compel the shareholders pushing for board changes to divest their holdings. Furthermore, the treasurer could prohibit these shareholders from voting at Thursday’s shareholder meeting, a possibility previously highlighted by the Western Australia Supreme Court in a November ruling.

Ron Mitchell, Global Lithium’s executive chairman, has implored shareholders to reject motions aimed at re-electing Chen, appointing other Chinese-born directors, and restricting the board to just three members. He argues that these moves would effectively hand control of the company to the alleged Chinese alliance.

The Manna lithium project, located near Kalgoorlie, is considered a vital asset in Australia's strategy to maintain domestic ownership of key mineral resources. Global Lithium halted development of the project late last year, citing a prolonged downturn in the battery raw materials market. The project boasts a substantial mineral resource estimate of 51.6 million tonnes (Mt) at 1% lithium oxide (Li2O), containing 515,000 tonnes of Li2O. Indicated resources stand at 32.9 million tonnes at 1.04% Li2O.

This situation unfolds within a broader context of the Australian government's efforts to curb foreign investment in strategic sectors, particularly critical minerals. Canberra has indicated that such investments should ideally originate from “like-minded” countries, a phrase widely interpreted as excluding Chinese entities. The government's stance reflects growing concerns about foreign influence over crucial resources and supply chains.

This is not an isolated incident. In June 2024, Treasurer Jim Chalmers mandated Yuxiao Fund, a Singapore-based investor with ties to China, to reduce its stake in Northern Minerals, an Australian rare earths explorer, citing national security concerns. That decision underscored the government's increasing assertiveness in scrutinizing and, where deemed necessary, intervening in foreign investment in the critical minerals sector.