Australia orders Chinese investors to sell down stake in rare earths miner

Northern Minerals

03/06/2024 01:11

SYDNEY, June 3 (Reuters) - Australian Treasurer Jim
Chalmers has ordered several China-linked investors to dispose
of shares in rare earths miner Northern Minerals  NTU.AX  on
national interest grounds under a foreign investment law, a
spokesperson said on Monday.
    Northern Minerals is developing the Browns Range heavy rare
earths project in Western Australia, at a time when the sector
has become increasingly strategic for its uses in green energy
and defence.
    The mine has been cited as a potential source of feed for
Iluka Resources'  ILU.AX  Eneabba rare earths refinery under
construction in Western Australia, which already has a A$1
billion  ($665.10 million) funding from the Australian
government and is waiting on a decision for more.
    Australia has said it is looking for friendly nations to
build out its critical minerals industry as the West diversifies
away from dominant producer China.
    A disposal order issued by Chalmers on Sunday said Yuxiao
Fund had 60 days to dispose of 80 million shares it bought in
September. Yuxiao Fund is the Singapore-registered private
investment vehicle of Chinese national Wu Yuxiao, Reuters has
previously reported.
    Northern Minerals has said the fund was controlled by Wu
Tao, the chairman of mainland China-based Jinan Yuxiao Group.
    Yuxiao Fund was restricted by the Australian government from
increasing its stake in Northern Minerals in February 2023. 
    Other foreign shareholders ordered to dispose of shares
within 60 days include Ximei Liu, Xi Wang, and Black Stone
Resources, the notice said.
    "The Treasurer has issued orders that Yuxiao Fund Pte Ltd
and four associates reduce their shareholdings in Northern
Minerals," a spokesperson for Chalmers said in a statement on
Monday.
    "The decision, based on advice from the Foreign Investment
Review Board, is designed to protect our national interest and
ensure compliance with our foreign investment framework."
    Last week Northern Minerals Chairman Nick Curtis exited the
company's board.


($1 = 1.5035 Australian dollars)

 (Reporting by Kirsty Needham in Sydney and Melanie Burton in
Melbourne; Editing by Stephen Coates)
 ((Kirsty.Needham@thomsonreuters.com;))