#JustIn: Chinese in lithium fight with Lepidico

Lepidico Ltd, an Australia-based lithium exploration and development company, has confirmed that Jiangxi Jinhui Lithium Co, a private Chinese corporation, has filed a notice of arbitration with the Singapore International Arbitration Centre regarding a stockpile at Karibib.

Lepidico is fully permitted for the re-development of two open pit mines at Rubicon and Helikon 1 south of Karibib.

The company, listed on the Australian Stock Exchange (ASX), issued a statement today, saying the notice of arbitration is in connection with the offtake agreement between Desert Lion Energy (Pty) Ltd, subsequently renamed Lepidico Chemicals Namibia (Pty) Ltd, and Jinhui dated 6 November 2017, which provided for the sale of material located in the stockpile at the Karibib project.

The agreement was amended in February 2018 and expired in November last year.

The notice includes a claim of nearly US$4.6 million, being the payment received from Jinhui in accordance with the offtake agreement.

Lepidico said the notice was filed without any attempt to commercially resolve the matter amicably.

The company said it believed that the arbitration is without merit, and that it has retained Canadian and Namibian litigation counsel “to vigorously defend itself and is contemplating counterclaims against Jinhui”.