Australia has directed six China-linked investors to divest their stakes in rare-earth miner Northern Minerals, intensifying Canberra’s efforts to safeguard critical mineral assets and reduce foreign influence in sectors considered strategically important for national security.
Australian Treasurer Jim Chalmers issued the disposal orders after authorities raised concerns that Chinese-linked entities were attempting to gain influence over Northern Minerals, a company developing the Browns Range heavy rare-earths project in Western Australia. The project is regarded as a key component of Western efforts to reduce dependence on China’s dominance in the rare-earths sector.
The six investors linked to mainland China, Hong Kong and the British Virgin Islands collectively hold about 17.6 per cent of Northern Minerals. Under the order, they were directed to sell their holdings to unrelated parties within two weeks.
“This decision was entirely consistent with advice from Treasury and the Foreign Investment Review Board. It is about protecting our national interest and ensuring compliance with our foreign investment framework,” Chalmers said.
Second Govt intervention in Northern Minerals in 2 years
The move marks the second major intervention by the Australian government involving Northern Minerals in less than two years. In 2024, Canberra ordered five Chinese-linked investors to dispose of their stakes on national-security grounds after concerns emerged over foreign influence in the company.
Australian authorities later alleged that some of those shares may have been transferred to Hong Kong-based investor Ying Tak, prompting further investigations. Earlier this year, the government restricted Ying Tak from voting at Northern Minerals’ annual general meeting and blocked the transfer of a significant portion of its shares while the Foreign Investment Review Board continued its probe.
The latest divestment order follows months of scrutiny over shareholder activity at the company. One of the China-linked investors, Vastness Investment Group, had earlier attempted to influence board leadership at Northern Minerals, fuelling concerns within Canberra about coordinated efforts to gain greater control over the miner.
Northern Minerals said it is reviewing the Treasurer’s order and considering its next steps. Following the announcement, the company’s shares fell sharply, reflecting investor uncertainty over the dispute and ownership changes.
Browns Range project
The Browns Range project is considered strategically important because it contains dysprosium and terbium, two heavy rare-earth elements used in high-performance magnets essential for electric vehicles, wind turbines, semiconductors, robotics and advanced defence systems.
The decision comes amid a broader push by Australia, the United States and allied countries to build alternative supply chains for critical minerals and reduce reliance on China, which currently controls around 90 per cent of global rare-earth processing and more than 90 per cent of magnet production capacity.
The development also follows a series of Australia-US agreements on critical minerals cooperation aimed at strengthening supply-chain resilience and preventing strategic assets from falling under foreign control.
China reacts, asks for fair business environment
China reacted sharply to the decision, urging Australia to respect the rights of Chinese investors and provide a fair, transparent and non-discriminatory business environment. Chinese state media criticised Canberra’s actions, arguing that Australia remains heavily dependent on Chinese markets while simultaneously restricting Chinese investment in sensitive sectors.
Analysts say the dispute highlights the growing geopolitical importance of critical minerals as countries race to secure resources required for clean energy technologies, artificial intelligence, semiconductor manufacturing and defence production.
The Australian government has indicated that it is prepared to take further action if necessary, signalling a tougher stance on foreign investment in strategic industries as competition over critical mineral supply chains intensifies globally.