Australia's government has broadened its directives to Chinese investors in rare earths company Northern Minerals, intensifying its push for divestment on national security grounds. This action comes after several Chinese-linked entities failed to comply with previous orders to sell their holdings. Federal Treasurer Jim Chalmers first ordered foreign shareholders to divest in 2024, and subsequent orders were issued in May 2026, requiring six shareholders to sell their stakes within two weeks.
The six investors, which include Hong Kong Ying Tak Ltd, Real International Resources Ltd, Qogir Trading & Service Co Ltd, Chuanyou Cong, Vastness Investment Group Ltd, and Zhongxiong Lin, collectively hold approximately 17% of Northern Minerals. As of early July 2026, a majority of the 1.68 billion shares subject to the May orders, valued at just under $41 million, remained registered under the names of the non-compliant entities. The July 2026 actions by Treasurer Chalmers involved issuing interim directions that stripped three of these foreign entities—Hong Kong Ying Tak Limited, Real International Resources Limited, and Qogir Trading & Service Co.—of all voting rights and shareholder powers. These three entities alone hold about 1.24 billion shares, representing 13% of Northern Minerals.
This ongoing saga is part of a broader governmental campaign to safeguard critical minerals supply chains and prevent perceived Chinese influence over key Australian resources. Northern Minerals is developing the Browns Range Heavy Rare Earths Project, aiming to become a significant producer of dysprosium and terbium outside of China, elements crucial for military, computing, and clean energy technologies. The Australian Strategic Policy Institute suggests that the government's actions signal a greater willingness to use investment policy as an economic security tool, particularly given China's dominance in the global rare earths market.
Earlier interventions include blocking a Chinese-linked investment vehicle, Yuxiao Fund, from increasing its stake in 2023, and subsequent orders in 2024 for five other China-linked companies to divest. Penalties, including $14 million in Federal Court fines, have already been imposed for non-compliance with these previous orders. The interim directions issued in July will remain in effect indefinitely until the non-compliant shareholders divest their holdings, with Northern Minerals itself instructed to refuse to recognize any rights exercised by these entities.
