Australia Orders Chinese Investors to Sell Northern Minerals Shares — Update

By Rhiannon Hoyle

Australia's government has ordered several shareholders in rare-earths company Northern Minerals to sell some or all of their stakes, the second time in two years it has intervened to force China-linked investors from the critical minerals company citing national-interest grounds.

Australian Treasurer Jim Chalmers on Monday said he had issued orders for six shareholders to divest certain interests in the company, which is valued at around US$157 million. Four of the investors rank as Northern Minerals' largest shareholders, according to Iress data.

Five are registered in either China or Hong Kong, and one in the British Virgin Islands, according to disposal orders published by the Treasury. They must dispose of the shares to investors with whom they have no association within two weeks, the orders say.

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

The company's stock fell by 4.2% Monday to 2.3 Australian cents, or 1.6 U.S. cents.

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.

Chalmers said the orders were "about protecting our national interest" and ensuring compliance with Australia's foreign investment framework.

"We operate a robust and non‑discriminatory foreign investment framework and we will take further action if it's necessary to protect our national interest in relation to this matter," he told reporters.

Northern Minerals said it is considering the latest orders. The investors named in the orders--including Beijing-based Vastness Investment Group, which Iress lists as the company's biggest shareholder with a 6.8% stake--couldn't immediately be reached for comment.

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

(END) Dow Jones Newswires

May 18, 2026 03:02 ET (07:02 GMT)