Treasurer demands sale of stakes in Northern Minerals. Similar interventions by the government date back several years.
Resource-rich Australia is increasingly positioning itself as a major producer of rare earths outside China. In line with this strategy, the government has intensified efforts to shield the strategically important sector from Chinese influence. On Monday, Australian Treasurer Jim Chalmers ordered six companies linked to China to divest their holdings in the rare earths company Northern Minerals within two weeks. According to media reports, the investors collectively hold around 17 percent of the company’s shares.
Northern Minerals stated that trading in its stock had been suspended while the company reviews the government’s directives.
Australia undertook similar measures more than two years ago, when five China-linked companies were targeted. Earlier interventions had also capped foreign ownership stakes, while the company’s shareholder structure has remained under close scrutiny.
Northern Minerals is currently developing its Browns Range project in Western Australia, with a focus on producing heavy rare earth elements such as dysprosium and terbium. These materials are processed into higher-value products almost exclusively in China. Since the global market leader introduced strict export controls on several rare earth elements last year, concerns over supply security have intensified further. Browns Range is therefore regarded by regional development authorities as a strategically significant heavy rare earths project.
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