Australia Orders Chinese Investors to Sell Northern Minerals Shares

By Rhiannon Hoyle

Australia's government has ordered some shareholders in rare-earths company Northern Minerals to sell their stakes, the second time in two years it has intervened to remove China-linked investors from the critical minerals company on national security grounds.

Australian Treasurer Jim Chalmers said the six shareholders, who own a combined 18% stake in the company that is valued at around US$163 million, were required to sell their stakes within two weeks.

Five of the investors are registered in either China or Hong Kong, and one in the British Virgin Islands, according to disposal orders published by the Treasury.

The company's shares were more than 6% lower at 2.25 Australian cents, or 1.61 U.S. cents, early afternoon in Sydney.

Northern Minerals is among critical-mineral companies to have attracted support from the U.S. Export-Import Bank, after the U.S. and Australia pledged to work together on projects that would loosen China's grip on commodities vital to defense and modern technologies.

The company owns the Browns Range project in the East Kimberley region of Western Australia, a potential source of heavy rare earths dysprosium and terbium that are today mostly produced by China. The critical minerals are added to permanent magnets to help them maintain their efficiency at higher temperatures.

Two years ago, Chalmers ordered another group of investors with ties to China to dispose of their shares ​in the company on ​national interest grounds.

Northern Minerals said it is considering the latest orders. The investors named in the orders couldn't immediately be reached for comment.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

May 18, 2026 00:27 ET (04:27 GMT)