The Czech Republic’s lucrative Cinovec lithium project is at the centre of a bitter takeover battle involving a key investor in food conglomerate Kraft Heinz.
Prague-based Krupa Global Investments (KGI), one of the largest institutional shareholders of Kraft Heinz, wants to buy the project and work with the Czech state to develop the project’s potential as a European battery materials supplier.
Cinovec developer European Metals Holdings (EMH), which also counts KGI as one of its largest Czech shareholders, has dismissed the bid.
But KGI is now stepping up pressure on Australia-based EMH— “insisting” that the developer move its headquarters to the European Union to “increase transparency”.
EMH confirmed it had received a letter from KGI “purporting to make an indicative offer on behalf of the Ceske Lithium company (a member of the KGI Group) to purchase the lithium mining and processing project at Cinovec”.
However, EMH said the letter “does not contain any detail with regards to price, terms or conditions”. “In light of the absence of this information EMH does not consider this to be an offer to which it can give consideration at this time.”
KGI chairman Pavol Krupa (pictured) said the group wants to “acquire” Geomet, an EMH subsidiary that holds the Cinovec extraction rights and is ready to “significantly increase” its stake in EMH.
“It is essential that the lithium mining operator in Cinovec is able to communicate effectively with representatives of the Czech state to achieve successful development and rapid progress on this project,” KGI said.
According to EMH, Cinovec “hosts a globally significant hard rock lithium deposit” with an initial probable ore reserve of 34.5Mt @ 0.65% Lithium oxide (Li2O)— making it “the largest lithium deposit in Europe”.
Czech prime minister Andrej Babis has previously called for the state to control the Cinovec project.