Australia orders six China-lined investors to divest Northern Minerals stakes: Report
New Delhi, May 19
Australian Treasurer Jim Chalmers issued orders to six China-linked shareholders to sell their holdings in rare-earth miner Northern Minerals over concerns that Chinese parties want to take control of the company, a report has said.
The report from Nikkei Asia said the move aims to protect Australia's national interests and ensure compliance with the foreign investment framework.
Australia wants to thwart control attempts at Northern Minerals, which is developing the Browns Range heavy rare‑earths project in Western Australia in line with Western governments seeking to loosen China's dominance in the sector.
"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," Chalmers said in the statement.
The decision follows earlier interventions in 2024 when five Chinese parties were required to dispose of shares on national‑interest grounds.
Australia then went on to restrict Hong Kong‑based investor Ying Tak from voting and selling its stake after investigations revealed Tak bought stakes from a Chinese party who was forced to sell in 2024.
Northern Minerals said that it is considering subsequent steps after receipt of the Australian Treasurer's order. The company's shares fell over 8 per cent to 0.022 Australian dollars, trading at less than half its issue price in a placement last October.
China's foreign ministry urged Australia to "earnestly respect" the rights and interests of Chinese investors and sought a transparent and non-discriminatory business environment for foreign investment.
China currently accounts for roughly 90 per cent of rare earth separation and processing and 93 per cent of magnet manufacturing, according to an article published by the Australian Institute of International Affairs.
This near monopoly has enabled China to use rare-earth exports as a strategic leverage. The most cited examples include the 2010 and January 2026 restrictions on shipments to Japan during maritime disputes in the East China Sea, as well as more recent export controls used in negotiations with the United States.
— IANS
Reader Comments
From a Western perspective, this makes sense—national security concerns are valid. But it feels a bit hypocritical when Western nations lecture others on free trade while doing this. China will likely retaliate somehow. Global politics is like a game of chess these days.
As an Indian, I find this interesting. Australia is trying to reduce dependency on China, but who will they turn to? India has been ramping up its rare earth capabilities, and the recent discovery in Andhra Pradesh could be a game changer. We should position ourselves as a reliable alternative—this is our chance!
China owns 90% of rare earth processing? That's scary. No wonder Australia is clamping down. But the way they're doing it—specifically targeting Chinese-linked investors—feels discriminatory. They say 'non-discriminatory' but actions speak louder. It's a double-edged sword.
Honestly, this is just geopolitics playing out. China used rare earths as a weapon in 2010 against Japan, so other countries have every right to be cautious. But Australia needs to be fair too—not all Chinese investments are bad. Let's hope this doesn't escalate into a full-blown trade war.
A necessary move, I think. Rare earths are critical for defence and tech. The Chinese Communist Party has a long history of using economic leverage for political goals. Australia is smart to act now rather than later. India should partner with Australia on this—common interests mean common solutions. 🤝
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