Rare Earths: Canberra Orders Investors with Ties to China to Sell Shares in Australian Companies
The Australian government ordered multiple shareholders with ties to China on Monday, May 18, to divest their stakes in Northern Minerals, an Australian rare earth producer. This marks the second time in two years that Canberra has taken similar intervention measures aimed at safeguarding this strategic industry from external influence.
According to AFP, Northern Minerals is challenging China’s dominant position in dysprosium production. Dysprosium is a rare earth mineral used in manufacturing permanent magnets, which are critical components in electric vehicle production.
In recent years, Chinese investors have repeatedly sought significant stakes in this Australian company.
In 2024, the Australian government had previously forced several other investors with links to China to sell their holdings in Northern Minerals under the Foreign Investment Act.
Concerned about potential control of the company, Northern Minerals proactively submitted to review by Australia’s Foreign Investment Review Board (FIRB) in November last year. Since then, the Australian government has closely monitored its situation.
Australian Treasurer Jim Chalmers stated in a statement: “We are enforcing a strict and non-discriminatory foreign investment regulatory framework. If necessary, we will take further actions to protect Australia’s national interests.”
Under the latest directive, six shareholders of Northern Minerals must sell their shares starting Monday, within two weeks. Among them, three companies are registered in mainland China, two are based in Hong Kong, and one is registered in the British Virgin Islands.
Data compiled by Bloomberg shows that four of these companies are Northern Minerals’ largest shareholders, including Vastness Investment—a Beijing-based investor holding nearly 7% of the company.
Northern Minerals said the company is reviewing the "new divestment directive" and will issue further announcements after completing its assessment.
Western nations, including Australia, are seeking to reduce dependence on China’s rare earth supply and develop alternative resource channels. In October last year, the United States signed an agreement with Australia to promote the use of Australian rare earths and critical minerals. Northern Minerals, valued at AUD 229 million, was listed as one of the key Australian enterprises supported under this agreement. The company holds development rights to a major dysprosium mine in Australia and positions itself as a reliable alternative supplier outside China.
According to Northern Minerals, approximately 99% of global dysprosium production currently comes from China.
Source: rfi
Original article: toutiao.com/article/1865515248799754/
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