The firm will seek to assert its opinion with the regulator, the Financial Market Commission, recalling the agreement's conditionality, which, in their opinion, should have been validated by the shareholders' meeting.

The agreement to exploit lithium in the Salar de Atacama between the state-owned Codelco and private firm SQM continues to generate shockwaves.

Although all seemed finalized on Friday the 31st, after both firms revealed the agreement, China-based Tianqui (an SQM shareholder since 2018) returned to the fray a few hours later regarding its complaint of not having the shareholders' meeting approval to validate said agreement. 

"The company will carry out a thorough evaluation within the legal framework and may consider actions to ensure the protection of the interests of its shareholders," Tianqi told the Shenzhen Stock Exchange in a statement issued on Sunday, reported by the Reuters agency.

In Chile, the firm will also seek to assert its opinion with the regulator, the Commission for the Financial Market (CMF), recalling the conditionality of the agreement.

"According to public information, the agreement between SQM and CODELCO is conditional on a resolution by the Financial Market Commission (CMF) of a request previously made by our company in which we have asked that an extraordinary meeting is held for shareholders to approve or reject the operation. The CMF has required SQM to issue a formal response to our request no later than June 3, which, together with other preconditions described in the same agreement, underlines that this agreement does not yet constitute neither a final nor valid legal act. Tianqi Lithium will closely follow the process to ensure that all legal formalities are duly fulfilled," the company says in its statement.

GOVERNANCE CONCERNS

In the Chinese firm's opinion, SQM's decision to sign the agreement while a response from the CMF is still pending sets a worrying precedent in terms of corporate governance and good practices.

"As custodians of the interests of our investors, at Tianqi Lithium we emphasize our fiduciary duty to exercise and enforce our rights as a minority shareholder of SQM. As we have indicated, we will not hesitate to resort to all necessary legal bodies to guarantee full recognition and respect for these rights."

Tianqi's main complaint would seem to be the rush of the private firm's agreement with the Chilean state copper company.

"While our position has never been contrary to the agreement per se, we reiterate that it is imperative that any successful public policy, such as Chile's national lithium strategy, be based on respect for all the actors involved, including the communities of the zone, minority shareholders, pension funds and Chilean society in general," their statement indicates.

The Chinese firm reiterates that it finds it surprising that a key agreement for Chile's entire national lithium strategy is intended to be concluded under such circumstances.

"According to public information, the media have announced numerous doubts about the hasty signing of this association. Even the day before the signing, an extensive cross-sectional group of parliamentarians from all political sectors have formally asked the government for the wisdom of waiting until that the various issues still pending be resolved not only by the CMF but also with the communities near the Salar de Atacama. The long-term success of any public policy depends on an inclusive, constructive and transparent dialogue and not on the imposition of conditions behind closed doors," claims Tianqi.

They also reiterate that this agreement must be submitted to the approval of the shareholders' meeting, as it involves the disposal of the company's strategic assets.

"We trust that the CMF will recognize and establish this approval as an essential requirement for the validity of the agreement, in accordance with the legal regulations in force in Chile and basic rules of good governance and protection of shareholder rights," they conclude.

Last March, the Chilean media La Tercera indicated that six years ago, when the National Economic Prosecutor's Office (FNE) imposed restrictions on Tianqi to participate in SQM (eventually lifted in October 2023), the firm secretly asked FNE to extend them.