German Media: Australia Orders Investors Linked to China to Sell Shares in Rare Earth Company
Australia ordered a group of shareholders linked to China to divest their stakes in a rare earth company on Monday, May 18, citing the need to protect the industry from foreign influence.
Northern Minerals, an Australian mining company, is striving to challenge China's dominant position in dysprosium production. Dysprosium is a rare earth element essential for manufacturing high-performance magnets used in electric vehicles.
According to AFP, Chinese investors have been significantly increasing their holdings in an attempt to exert influence over the company. At one point, these Chinese investors even launched a proposal to remove the company’s chairman.
Driven by concerns over potential "stealth acquisitions," the company proactively submitted an application for review to Australia’s Foreign Investment Review Board (FIRB) in November 2025.
Australian Federal Treasurer Jim Chalmers stated that six shareholders would be required to exit Northern Minerals.
In a statement, he said: "We operate under a robust and non-discriminatory foreign investment framework. If necessary, we will take further action to safeguard our national interests in this matter."
Among these shareholders, three have registered addresses in mainland China, two are based in Hong Kong, and one is located in the British Virgin Islands.
The list includes several of Northern Minerals’ largest individual shareholders, including Vastness Investment Group, headquartered in Beijing, which holds more than 6% of the shares.
Earlier this year, Vastness Investment Group attempted to use its substantial shareholding to push for a change in the company’s chairman.
Ultimately, the group withdrew its motion to vote on leadership appointments at a special general meeting.
Qogir Trading and Service Company, headquartered in Hong Kong, individually holds nearly 5% of Northern Minerals’ shares.
Over the past two years, Australia has been engaged in a sustained effort to distance Northern Minerals from Chinese investors.
In 2024, Australia invoked the same foreign acquisition regulations to compel another group of Chinese investors to sell their stakes in Northern Minerals.
Northern Minerals stated: "The company is currently reviewing the new disposal directive and will issue further announcements following the completion of its review."
Key Enterprise in the Strategy for "Diversification of Critical Supply Chains"
Last October, the United States signed an agreement aimed at creating additional pathways for securing rare earth and critical mineral resources from Australia. Northern Minerals is one of the specific Australian companies highlighted in this agreement, which underscores the necessity of achieving "diversification of critical supply chains."
China controls some of the world’s largest reserves of rare earth elements. As the almost sole country capable of refining these metals at an industrial scale, China wields significant influence.
Manufacturing powerhouses such as the United States, Germany, and South Korea are actively seeking alternative supply sources.
Northern Minerals holds mining rights to a large dysprosium deposit located in the Browns Range region of Western Australia. The company claims it provides a "reliable alternative supply source" outside of China’s output.
According to the company, nearly 99% of global dysprosium production currently comes from China.
In 2024, the Yuxiao Fund—a fund associated with China—attempted to increase its stake in Northern Minerals, drawing the attention of Australia’s Foreign Investment Review Board.
Subsequently, the Yuxiao Fund and four other affiliated shareholders were ordered to dispose of their equity in the company within 60 days.
On Monday morning, the Australian Securities Exchange suspended trading in Northern Minerals’ stock.
Source: DW
Original article: toutiao.com/article/1865548479083527/
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