Australian rare earth miner delays AGM on China influence concern

Northern Minerals

30/10/2023 23:56

MELBOURNE, Oct 31 (Reuters) - Australian rare earths
miner Northern Minerals  NTU.AX  has pushed back a shareholder
meeting to allow regulators time to assess whether a Chinese
national nominated to the board by top shareholder Yuxiao Fund
would meet national interest criteria.
   Australia's government has said it is looking for friendly
nations to build out its critical minerals industry as the West
diversifies away from dominant producer China. Northern Minerals
is developing in the Browns Range heavy rare earths project in
Western Australia.
    Treasurer Jim Chalmers in February blocked Singapore-based
Yuxiao Fund from increasing its investment in Northern Minerals
on national interest grounds. 
    The private fund lists Chinese national Wu Yuxiao as
director. It owns 9.81% of Northern Minerals and had sought
Foreign Investment Review Board (FIRB) approval in August 2022
to raise its ownership to 19.9%.
    Northern Minerals received regulatory approval to delay its
annual general meeting by three months, it said in a stock
exchange filing late on Monday, as it sought more information
about three board nominees. 
    Yuxiao Fund has nominated Wu Tao, the chairman of mainland
China-based Jinan Yuxiao Group which has invested in mining
projects in Mozambique and Australia. The group's website lists
Northern Minerals as one of its investments.
    "The Board understands that Mr. Wu is effectively the
ultimate controller of Yuxiao Fund."
    "As the appointment of Mr. Wu as a Director would place
Yuxiao Fund in a position to exert a direct influence on the
central management and control of the Company, Northern
Mineral's board concluded it would be appropriate for Yuxiao
Fund to apply to the Foreign Investment Review Board to seek
approval for Mr. Wu's appointment," it said.
    Northern Minerals said it has not received confirmation from
nominee Wu that Yuxiao Fund intends to seek FIRB approval.
    Northern Minerals said is also seeking to better understand
whether there are links between two other board nominees who may
also have ties to Wu and Yuxiao Fund.

 (Reporting by Melanie Burton and Kirsty Needham; Editing by
Christopher Cushing)
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