Mei Ri Jing Ji Xin Wen·2026-02-02 14:53Core Viewpoint - The international dispute has arisen regarding the strategic cooperation between Shenghe Resources and ETM, with Shenghe's overseas investment rights facing challenges due to ETM's unilateral declaration of the termination of their agreement [2][4]. Group 1: Background of the Investment - In September 2016, Shenghe Resources and its subsidiary Leshan Shenghe Rare Earth Co., Ltd. signed a share subscription agreement with Greenland Minerals Energy Ltd, agreeing to subscribe for 125 million shares at a price of AUD 0.037 per share, totaling AUD 4.625 million, approximately RMB 23.59 million [3]. - Following the investment, Leshan Shenghe held 12.5% of Greenland's issued shares and obtained a non-executive director position [3]. - The agreement included a strategic cooperation relationship and a right of anti-dilution for Shenghe Resources [3]. Group 2: Recent Developments - ETM announced the unilateral termination of the strategic cooperation relationship with Shenghe, claiming that the anti-dilution rights are no longer valid [4][6]. - Shenghe Resources has denied ETM's claims and plans to communicate with ETM while taking legal measures to protect its rights [2][5]. - As of the latest disclosure, Shenghe holds approximately 129 million shares of ETM, representing about 6.5% of the company [3]. Group 3: Financial Implications - Shenghe's total investment in ETM amounts to RMB 24.34 million, with an estimated fair value increase of RMB 17.22 million as of September 30, 2025 [5]. - ETM's Kvanefjeld project has not yet obtained mining rights and has not engaged in substantial production activities, which is not expected to negatively impact Shenghe's business [5][6]. Group 4: Strategic Changes at ETM - ETM has shifted its strategic focus from a single rare earth project to a diversified asset portfolio, including lithium exploration projects in Canada and Spain [6]. - ETM plans to issue new shares to fund the Kvanefjeld project, which may dilute Shenghe's equity stake [7].