The Australian government, led by Treasurer Jim Chalmers, has ordered several China-linked investors to dispose of their shares in rare earths miner Northern Minerals NTU.AX on national interest grounds.
Northern Minerals is developing the Browns Range heavy rare earths project in Western Australia, a sector that has become increasingly strategic for its uses in green energy and defense.
The disposal order issued by Chalmers on Sunday requires Yuxiao Fund, a Singapore-registered private investment vehicle of Chinese national Wu Yuxiao, to dispose of 80 million shares within 60 days. Yuxiao Fund had sought to increase its ownership in Northern Minerals to 19.9% in 2022, but the request was denied by the Foreign Investment Review Board (FIRB) last year.
In addition to Yuxiao Fund, the order also requires other foreign shareholders, including Ximei Liu, Xi Wang, and Black Stone Resources, to dispose of their shares within 60 days.
The spokesperson for Treasurer Chalmers stated that the decision was based on advice from the FIRB and was designed to protect Australia’s national interest and ensure compliance with the country’s foreign investment framework.
Northern Minerals, in a statement, said it had referred certain share-buying activity to the FIRB for investigation last October, as it had a duty to act in the best interests of all shareholders, ensure the integrity of the company’s share register, and uphold its high standards of good governance.
The move comes as Australia seeks to build out its critical minerals industry, with the government providing a A$1 billion ($665.10 million) funding pledge for Iluka Resources’ Eneabba rare earths refinery project in Western Australia.
Australia has been screening foreign investment in key sectors for national security, including critical minerals, and has previously blocked some Chinese deals, which has irked Beijing. The country is preparing for a visit by Chinese Premier Li Qiang later this month.