Australia Orders China-Linked Investors to Divest from Northern Minerals Amid Critical Mineral Security Concerns

In 2024 Australia used foreign-takeover laws to force a group of Chinese investors to sell their Northern Minerals shares. A 2025 court case compelled a major shareholder to appear for breaching that order, ending in a Treasury victory. In October 2025 Australia signed a U.S. deal to broaden access to its rare-earth deposits, earmarking Northern Minerals as a non-Chinese source.

The Hindu

On 18 May 2026 Treasurer Jim Chalmers ordered six shareholders—registered in mainland China, Hong Kong and the British Virgin Islands—to sell their stakes in Northern Minerals Ltd. within two weeks, citing protection of Australia’s strategic rare-earth interests.

The Hindu

Northern Minerals’ Browns Range project in Western Australia holds a large dysprosium-terbium deposit. Dysprosium is vital for high-performance magnets in electric vehicles, wind turbines and defence. China supplies about 99 % of global dysprosium and refines 95-98 % of it, giving it near-monopoly control. Australia’s recent pact with the United States aims to diversify critical-mineral supply chains and curb reliance on Chinese processing.

DW News

The six targeted investors include Beijing-based Vastness Investment (?6-7 % of Northern Minerals), Hong Kong-registered Qogir Trading (?5 %), Yuxiao Fund and four other China-linked entities. Together they hold almost 27 % of the company’s float, covering the four largest shareholders.

The Hindu

Bloomberg values the six stakes at about A$219 million after a 4.2 % share-price dip; Business Times reports a larger >8 % fall and a market cap of A$229 million, showing slight data variations.

Australia orders Chinese investors to sell stakes in rare earths firm over national security

• Treasury: Australia “operates a robust and non-discriminatory foreign-investment framework” and will act to protect national interest.

Australia orders Chinese investors to sell stakes in rare earths firm over national security

• Northern Minerals: reviewing the disposal orders and will announce further actions after decisions.

The Hindu

• China’s Ministry of Foreign Affairs: not aware of the issue and urges respect for foreign investors’ legitimate rights.

Bloomberg

China’s diplomatic response frames the orders as an infringement on legitimate investment rights, highlighting tension between security-driven policy and market openness.

Bloomberg

• Share-price: Bloomberg notes a 4.2 % drop; Business Times reports >8 % decline.

Bloomberg

• Valuation: Bloomberg cites A$219 million; Business Times cites A$229 million.

Bloomberg

• Vastness stake: “more than six percent” vs. “around 7 %”.

The Hindu

• “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,” — Jim Chalmers, Australian Treasurer

The Hindu

• “currently considering the new disposal orders and will make a further announcement once it has done so” — Northern Minerals (statement)

The Hindu

• “China’s Ministry of Foreign Affairs said it wasn’t aware of the issue, but urged Australia to respect the legitimate rights of foreign investors.” — China’s Ministry of Foreign Affairs

Bloomberg

The divestment deadline is 1 June 2026. Northern Minerals will evaluate the impact on its capital structure and on the Browns Range project. Ongoing support from Australian and U.S. governments for domestic rare-earth processing suggests further policy steps to secure supply chains.

Bloomberg