New Delhi, May 19 (SocialNews.XYZ) 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
aar/ag
Source: IANS
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