Tianqi to launch impairment test for overseas projects

Tianqi Lithium (9696) warned that a possible impairment provision for overseas lithium hydroxide projects may have a “significant impact” on its operating results last year.

In accordance with relevant regulations and the company's accounting policies, Tianqi is conducting an impairment test on the projects during the preparation of the 2024 annual report, taking into account the latest developments, according to a filing on Monday. 

It is in ongoing communication with the management of its controlling subsidiary to confirm relevant information and no final conclusions have been reached regarding the assumptions and results of the impairment test, the filing said.

Should the company subsequently determine to recognize an impairment provision for these projects and if the amount of asset impairment loss recognized has a significant impact on its operating results for 2024, it will make further announcements, the statement said.

Tianqi launched the “battery-grade lithium hydroxide monohydrate project with an annual capacity of 24,000 tons” in 2016 and the “Train II battery-grade lithium hydroxide monohydrate project with an annual capacity of 24,000 tons” in 2017.
They are implemented by a wholly owned subsidiary Tianqi Lithium Energy Australia, with Tianqi holding 51 percent of the stake in TLEA, said the filing.

Staff reporter