The Australian government has ordered six China-linked companies to divest their combined 17% stake in Northern Minerals, a rare earths mining firm developing the Browns Range Heavy Rare Earths Project in Western Australia. Treasurer Jim Chalmers cited national interest and compliance with foreign investment rules, reinforcing Australia’s stance on economic security. Rare earth elements like dysprosium and terbium are essential for high-strength magnets used in military systems, computing, and clean energy technologies.

Northern Minerals is seen as a strategic asset in efforts by Australia and the United States to reduce reliance on China’s dominance in rare earths processing and supply. The company is on track to receive about $500 million in funding from the U.S. Export-Import Bank, underscoring its geopolitical significance. The current intervention follows earlier actions in 2023 and 2024, where Chalmers blocked similar attempts by Chinese-linked entities to increase their stakes.

The Foreign Investment Review Board found that some previously blocked investors had transferred shares to Hong Kong Ying Tak Ltd, one of the six firms now ordered to sell. One of the targeted firms, Beijing-based Vastness Investment Group, had previously attempted to oust the company’s chairman. Northern Minerals has entered a trading halt and is reviewing the government’s directive, while the ABC has been unable to contact the affected investors.