Australia Orders Chinese Investors to Divest from Northern Minerals
Based on ‘national security’ grounds, the Australian Government has ordered Chinese investors to sell off their stakes in Northern Minerals, which is a miner in the strategic field of Rare Earth Elements (#REE). According to a statement from the Australian Treasury, six firms linked to China have to sell off their stakes within two weeks, as from Monday, the 18th of May 2026.
These six Chinese firms are registered in Mainland China, Hong Kong SAR, and the British Virgin Islands. The six companies concerned are: 1) Hong Kong Ying Tak, 2) Real International Resources, 3) Qogir Trading & Service, 4) Chuanyou Cong, 5) Beijing Vastness Investment Group, and 6) Zhongxiong Lin. Together, they hold 27% stake in Northern Minerals. Upon the announcement on Monday, the share price of Northern Minerals (ASX: NTU) dropped by 4.2% at market close.
Northern Minerals holds the exploitation rights to the Browns Range mine located in East Kimberley in Western Australia. In addition, the company holds rights to the John Galt in Western Australia and Boulder Ridge projects in the Northern Territory.
The greenfield Browns Range Project, which is estimated to hold 45,800 tonnes of Total Rare Earth Oxides (TREO) at an average grade of 0.88%, including the heavy REE: terbium (Tb) and dysprosium (Dy). Once operational, it is forecasted to be able to supply up to 10% of the global demand for these two REE. Iluka Resources (ASX: ILU) has signed a binding offtake agreement with Northern Minerals as early as 2022, and intends to process the minerals at its Eneabba Refinery.
“The decision is entirely consistent with advice from Treasury and the Foreign Investment Review Board and it is about protecting our national interest and ensuring compliance with our foreign investment framework.”
Austalia Treasury Spokesperson
The decision comes after Northern Minerals received non-binding letters of support from both the Australian and American governments for the development of its strategic mining assets. US EXIM Bank has indicated that it is prepared to inject USD 500 million into the Browns Range project on the condition that Chinese linkages are cleared.
It is to be recalled that Australia effected a similar decision in 2023 over Northern Minerals. Back then, Australia blocked Singapore-registered Yuxiao Fund from increasing its stake in Northern Minerals from 10% to 19.9%. Since China weaponized #RareEarths following Trump’s #tariffs, these have moved from a commercial issue to a security issue. Rare Earths, and #CriticalMinerals in general, now lie at the center of strategic competition, military power, and economic resilience.