Australia has ordered six China-linked shareholders to divest their stakes in rare earths developer Northern Minerals after authorities raised concerns over attempts by Chinese-linked investors to gain influence over the company, according to a decision announced by Treasurer Jim Chalmers on May 18.
The move marks Canberra’s latest intervention in the strategically sensitive rare earths sector, as Western governments seek to reduce dependence on China for critical minerals used in semiconductors, defence systems and advanced technologies, Caliber.Az reports via British media.
Northern Minerals is developing the Browns Range heavy rare earths project in Western Australia, a key source of dysprosium and terbium — minerals essential for high-performance magnets and military applications.
Chalmers said the decision was taken to protect Australia’s national interest and ensure compliance with the country’s foreign investment rules.
“We operate a robust and non-discriminatory foreign investment framework, and will take further action if required to protect our national interest in relation to this matter,” he said in a statement.
The company said it was aware of the Treasurer’s orders and was reviewing its options. Shares in Northern Minerals fell more than 8% following the announcement, trading at A$0.022 — less than half the price of a capital raising completed last October.
The order follows earlier government action in 2024, when five Chinese-linked investors were instructed to dispose of their holdings in the miner on national interest grounds. Australian authorities later found that some of those shares had been transferred to Hong Kong-based investor Ying Tak, which was subsequently restricted from voting its shares at the company’s annual meeting.
Ying Tak is among the six entities now ordered to sell their stakes.
China criticised the decision, with the foreign ministry urging Australia to “earnestly respect” the rights and interests of Chinese investors and calling for a transparent and non-discriminatory environment for foreign investment.
By Aghakazim Guliyev
