Rinehart seizes strategic stake in lithium star Liontown

Australia’s richest person, Gina Rinehart, is now the largest shareholder on lithium star Liontown Resources’ register, having seized a strategic 19.9 per cent stake in just one month that gives her a commanding say over the miner’s future.

The mining magnate boosted her holdings on Wednesday to just below the 20 per cent takeover threshold, saying she wants a prominent influence over Liontown through her company, Hancock Prospecting.

Gina Rinehart has built a stake in Liontown.Credit: Trevor Collens

Rinehart’s aggressive share-buying spree was heralded with an initial 7.72 per cent stake last month and successive incremental raids have boosted her holding to be greater than Liontown chair Tim Goyder’s.

Hancock’s sizeable presence and the company’s talk of contributing to Liontown’s future and seeking a position on the board will become a critical factor for US chemical giant Albemarle’s intended takeover of the miner and its lucrative high-quality hard-rock lithium deposit in Kathleen Valley, in the middle of Western Australia.

Albermarle is deep into due diligence – running a ruler over the miner’s books – and is expected to finalise the process within days before a vote on its takeover offer, which values Liontown at $6.6 billion.

Hancock has spent nearly $1 billion to gain a blocking position.

After its initial raid, Hancock said it would use its mining expertise to support Kathleen Valley’s development and subsequent operations, while exploring opportunities for downstream value adding of the mine’s output in Western Australia.

On Wednesday, the company said in a statement: “Hancock now looks forward to having a prominent influence on Liontown’s future, as its largest shareholder.”

Liontown would not comment on Hancock’s activities.

Rinehart’s gatecrashing of Albemarle’s takeover party is part of a global race to control lithium, a key component in modern home and grid batteries used to store the renewable energy generated from wind and solar or to power electric cars.

Vehicle manufacturers across China, Europe and the US are scrambling to secure supplies as they pivot to making all-electric transport, a shift that is fuelling mining explorers and putting small operators such as Liontown supplying the raw material in the sights of global mining giants.

Albemarle already holds a 4.3 per cent stake in the WA miner through its subsidiary RT Lithium. It agreed to terms around non-disclosure and exclusivity arrangements in mid-September on an exclusive basis, subject to customary fiduciary exceptions.

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