The core origin of Australia's rare earth refining and extraction technology lies in China's "cascade extraction theory" and its accompanying industrial process package, not in indigenous Australian innovation. How to strengthen protection of China's unique technology remains a challenging issue!

According to Australian Financial Review, the Australian government has issued an order freezing the equity-related rights of certain shareholders suspected of Chinese background at Northern Minerals, a rare earth development company, in response to Western Australia (WA) state’s rare earth (rare earth elements) development plan. Although a directive to sell their stakes was issued in May, no action had been taken by the July 2nd deadline, prompting this measure. The objective is to exclude foreign influence.

The companies involved include In-Tack, a Hong Kong legal entity, Cogill Trading, and Real International Resources, registered in the British Virgin Islands. Together, these three companies and five other shareholders hold approximately 1.68 billion shares, accounting for 17.6% of the issued shares. A spokesperson for the Treasury stated: “Foreign enterprises investing domestically must comply with domestic laws. To protect national interests and ensure the integrity of the foreign investment regime, we will take necessary measures.”

■ Be Alert to China’s Market Control

The Browns Range mine project planned by Northern Minerals in Eastern Kimberley, WA, contains abundant dysprosium and terbium—elements essential for high-strength magnets used in electric vehicles (EVs), wind turbines, and missiles.

Currently, China accounts for about 70% of global rare earth mining and roughly 90% of rare earth separation and refining. It holds an overwhelming dominance especially in the refining and supply of dysprosium and terbium. Countries including Australia, Japan, and the United States are concerned that China might leverage market control as a tool for diplomatic and economic pressure, leading Western nations to accelerate efforts to build independent supply chains.

The Browns Range project could become the first fully integrated source of dysprosium outside China and is designated as a key supply source under the crucial mineral agreement between Australia and the United States. Northern Minerals plans to make a final investment decision on its A$592 million (approximately JPY 67 billion) development project by the end of September, with production expected to begin by the end of 2028.

The produced rare earths will be supplied to Iluka Resources’ rare earth refining plant currently under construction in Eneabba, WA.

Original source: toutiao.com/article/1870912406419467/

Disclaimer: This article represents the personal views of the author