Australia Orders Six Chinese-Linked Investors to Divest Northern Minerals Shares

Jim Chalmers, Australia's Federal Treasurer, ordered six Chinese-linked investors to divest their holdings in rare earths miner Northern Minerals within 14 days. The targeted entities — Chuanyou Cong, Zhongxiong Lin, Vastness Investment Group, Hong Kong Ying Tak, Real International Resources, and Qogir Trading & Service Co. — collectively control approximately 17.5% of the company's stock, valued at roughly $40 million. The Foreign Investment Review Board provided the advisory basis for the mandate, identifying concerns over foreign interference and Chinese attempts to gain control of the Browns Range heavy rare earths project in Western Australia's Kimberley region.

The Browns Range project contains high-grade deposits of dysprosium and terbium, minerals critical to semiconductors, defense hardware, electric vehicles, and green technology. The Australian government views Northern Minerals as essential to breaking China's dominance over the global critical minerals supply chain. The divestment order follows a pattern of circumvention attempts: Vastness Investment Group tried to oust Northern Minerals chair Adam Handley in January, Hong Kong Ying Tak allegedly received shares from previously sanctioned Chinese individuals, and Qogir Trading conducted a partial sell-off in March before being ordered to fully divest.

Northern Minerals' share price dropped between 4% and 8% following the announcement. The company said it is assessing its response. China's Foreign Ministry urged Australia to respect the rights of Chinese investors and maintain a fair business climate, framing the dispute as part of broader Western efforts to reduce dependency on Chinese critical mineral supplies.