Australia blocks Chinese investment in rare earths firm citing national interest -executive

Northern Minerals

28/02/2023 05:33

By Kirsty Needham
       SYDNEY, Feb 28 (Reuters) - Northern Minerals Ltd
 NTU.AX  on Tuesday said Australia's government has blocked the
heavy rare earths producer's largest shareholder, China's Yuxiao
Fund, from increasing its investment on grounds of national
interest.
    Yuxiao Fund sought Foreign Investment Review Board approval
in August to raise its ownership to 19.9% from 9.92%. A
government register showed Treasurer Jim Chalmers signed a
prevention order on Feb. 15.
    The fund is an investment vehicle of Yuxiao Wu who also owns
miners in Mozambique supplying lower-grade rare earths to China,
Northern Minerals Executive Chairman Nick Curtis told Reuters.
    "There is a special category of assets for any government to
protect its national interest," Curtis said.
    Wu invested in Northern Minerals for financial reasons, not
to supply China, and voted in favour of an exclusive supply deal
with Australia's Iluka Resources Ltd  ILU.AX  last year, Curtis
said.
    Northern Minerals said it plans to become the first
significant world producer of dysprosium outside of China.
Dysprosium is a key component used in magnets for electric
vehicles.
    Yuxiao Fund and the Australian Treasurer's office did not
immediately respond to requests for comment.

 (Reporting by Kirsty Needham; Editing by Christopher Cushing)
 ((Kirsty.Needham@thomsonreuters.com;))