Australia has mandated six China-linked shareholders to divest their interests in Northern Minerals, as announced by Treasurer Jim Chalmers.
This decision follows concerns over attempts by Chinese parties to gain control of the company, which is advancing the Browns Range heavy rare earths (HRE) project in Western Australia, reported Reuters.
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The Browns Range HRE project is situated 160km south-east of Halls Creek, on the northern edge of the Tanami Desert in the East Kimberley region.
It features the Wolverine deposit, recognised as Australia’s highest-grade source of dysprosium and terbium.
The project is significant as Western nations strive to reduce dependency on China in the rare earths sector, which is crucial for industries such as semiconductors and defence.
The investors, Chuanyou Cong, Hong Kong Ying Tak, Qogir Trading & Service, Real International Resources, Vastness Investment Group and Zhongxiong Lin, currently hold approximately 17% of the company, reported ABC.
They are required to divest their shares within a two-week time frame.
Chalmers said: “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.”
Northern Minerals acknowledged the Treasurer’s directive and is assessing its future actions.
The company’s share value declined by more than 8% to A$0.022 ($0.015), less than half the price from a previous equity placement in October.
Australia previously intervened in Northern Minerals’ shareholder structure in 2024, requiring Chinese parties to sell their stakes on national interest grounds, which some transferred to Ying Tak.
Efforts by the news agency to obtain comments from Ying Tak were unsuccessful, as no contact information is available.
During a news briefing, China’s Foreign Ministry responded by urging Australia to “earnestly respect” Chinese investors’ rights and called for a fair business climate for foreign investments.
