The Australian Government, led by Treasurer Jim Chalmers, has blocked the acquisition of a majority stake in lithium miner Alita Resources by Austroid Corporation, a company with ties to China.
The prohibition order restricts Austroid from acquiring a further 90.10% share of Alita Resources and its Australian subsidiary, Austroid Australia, from proposing to wholly acquire the mining firm.
Alita Resources has been facing financial difficulties since 2019 and Austroid has expressed disappointment at the government decision, as the proposed deal would have converted debt into equity.
The specifics behind the Australian Government's decision have not been disclosed, but it's consistent with advice from the country's Foreign Investment Review Board.
More selective about investments
Austroid Corporation's director Mike Que is linked to China's lithium battery industry through his father, Que Wenbin, who holds a significant interest in Chinese lithium battery maker Sichuan Western Resource.
This decision comes amidst Chalmers' previous statements about Australia becoming more selective about investments in its critical minerals industry.
The decision has also sparked criticism from China, urging Australia to provide a non-discriminatory business environment for Chinese investors.