Critical Metals Corp Faces Scrutiny Amid Controversial Leadership
Critical Metals Corp, an Australian-American company poised to acquire Australian firm Tanbreez and potentially take over the exploitation license for rare earth metals in Killavaat Alannguat, has recently drawn attention from Romanian media outlets. Notably, Romania-Insider.com and Ziarul Financiar have investigated the shareholder group behind Critical Metals Corp’s parent company, European Lithium. Central to their findings is the figure of Frank Timis, a Romanian-Australian businessman with a contentious past who currently resides in London. Timis holds a majority of shares in the company and is perceived to be a shadow leader aiming to position Romania as a processing hub for future industrial metal and magnet production.
A Controversial Past
Frank Timis is no stranger to controversy. Early in his career in Perth, Australia, he faced several arrests related to heroin possession. Yet, he remarkably turned his fortunes around, amassing a considerable wealth estimated at around $12 billion through ventures in mining and oil extraction. Companies such as Gabriel Resources, Regal Petroleum, and African Minerals have contributed to this wealth.
Timis’s business dealings have not been without scrutiny; he has faced investigations for tax evasion, corruption, and fraud. A notable case highlighted by the BBC in 2019 questioned his acquisition of a gas field off the coast of Senegal, while recent demands from Senegalese authorities for €250 million in unpaid taxes connected to oil agreements remain unresolved. Several investigations into his ventures have stalled due to insufficient evidence, and many of his companies are registered in the Virgin Islands, complicating transparency for authorities.
The Ministry’s Response
When questioned about Frank Timis, officials from the Ministry of Raw Materials indicated they were not familiar with him. However, they confirmed that an in-depth review of the company was underway in accordance with the Mining Act’s regulations concerning rights holders. Essentially, Critical Metals Corp must secure approval from the ministry before proceeding with the exploitation license in Killavaat Alannguat.
The department has a challenging task ahead. Previous cases against European Lithium involving market manipulation have been reported by multiple media outlets, raising alarm bells in Greenland’s mining community. Naaja H. Nathanielsen, the minister responsible, stated that the department is diligently investigating the circumstances surrounding the potential transfer of Tanbreez.
Environmental Concerns
The ongoing case has prompted environmental organizations like NOAH to emphasize the necessity of thorough investor screening laws in Greenland. Niels-Henrik Hooge, a spokesperson for NOAH, highlighted the importance of vetting investors, particularly those with questionable backgrounds. He expressed concern over the appointment of individuals with previous legal troubles and questioned the motivations of investors who might not comply with local laws and tax regulations.
“There is a pressing need to adopt an investor screening law in Greenland to rigorously vet companies like Critical Metals Corp before granting them rights to significant rare earth metal deposits,” Hooge stated. He believes that such legislation would enable cooperation with Danish justice officials in investigating suspicious business practices.
In Search of Clarity
Professor Per Nikolaj Bukh from Aalborg University has also assessed the structure of European Lithium and Critical Metals Corp, noting the opacity surrounding ownership. He remarked, “It is entirely unclear who controls these companies and who ultimately profits from them. The principal shareholders, including major banks, have underlying shareholders whose identities often remain undisclosed.”
As investigations into Critical Metals Corp and its affiliations continue, the outcome remains uncertain. Stakeholders and observers alike are left to consider the implications of this potentially significant venture into Greenland’s mining exploration, particularly in light of the ethical and regulatory challenges posed by its leadership.