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Australia ordered a drawstring of China-linked shareholders to merchantability their stakes successful a uncommon earths steadfast connected Monday (May 18, 2026), citing the request to support the assemblage from overseas control.
Northern Minerals is vying to situation China's dominance of dysprosium production, a uncommon world mineral utilized to marque high-performance magnets utilized successful electrical vehicles.
Chinese investors person been snapping up shares successful an effort to exert sway implicit the steadfast — connected 1 juncture adjacent launching a bid to topple its chair.
Wary of a stealth takeover, the institution referred itself to Australia's overseas concern reappraisal committee successful November 2025.
Treasurer Jim Chalmers said six shareholders would beryllium forced to exit Northern Minerals.
"We run a robust and non-discriminatory overseas concern model and volition instrumentality further enactment if required to support our nationalist involvement successful narration to this matter," helium said successful a statement.
Three of those shareholders had addresses listed successful China, 2 were listed successful Hong Kong, and 1 was listed successful the British Virgin Islands.
The database included immoderate of Northern Minerals' largest azygous shareholders, including Beijing-based Vastness Investment Group, which held much than six percent of the firm.
Vastness tried to usage its sizeable involvement to regenerate the seat of Northern Minerals earlier this year.
It yet withdrew its bid to ballot connected the company's enactment astatine an bonzer wide meeting.
Hong-Kong based Qogir Trading and Service Company separately holds astir 5% of Northern Minerals.
Australia has implicit the past 2 years waged a moving conflict to pry Northern Minerals distant from Chinese investors.
It utilized the aforesaid overseas takeover laws successful 2024 to unit a antithetic radical of Chinese investors to merchantability shares successful Northern Minerals.
Northern Minerals said it was "currently considering the caller disposal orders and volition marque a further announcement erstwhile it has done so".
The United States signed a woody successful October past twelvemonth unlocking greater entree to Australia's deposits of uncommon earths and captious minerals.
Northern Minerals was 1 of the Australian companies singled retired nether the deal, which touted the request to "diversify captious proviso chains".
Enormous influence
China controls immoderate of the world's largest reserves of uncommon world elements.
It wields tremendous power arsenic astir the sole state capable to refine the metals connected an concern scale.
Manufacturing nations specified arsenic the United States, Germany, and South Korea are connected the hunt for alternate sources.
Northern Minerals has the rights to a important dysprosium deposit recovered astatine Browns Range successful Western Australia.
It bills itself arsenic a "reliable alternate source" to "production sourced from China".
Almost 99% of the world's dysprosium is presently produced successful China, according to the company.
The China-linked Yuxiao Fund sought to up its involvement successful Northern Minerals successful 2024, a determination that drew the attraction of Australia's Foreign Investment Review Board.
Yuxiao Fund and 4 different associated shareholders were subsequently fixed 60 days to dispose of their interests successful the company.
The Australian Securities Exchange halted trading successful Northern Minerals connected Monday (May 18) morning.
