Treasurer Jim Chalmers issues yet more orders for mystery Northern Minerals investors to dump shares

Northern Minerals is digesting yet another edict from Federal Treasurer Jim Chalmers for mysterious Chinese interests to get off the rare earth miner’s register after his previous orders were ignored. The company on Monday entered a trading halt shortly after Dr Chalmers directed six investors — Hong Kong Ying Tak Ltd, Real International Resources Ltd, Qogir Trading & Service Co Ltd, Chuanyou Cong, Vastness Investment Group Ltd and Zhongxiong Lin — to sell their holdings within 14 days. Together, the six hold an interest of almost 1.7 billion shares worth just under $41 million — or about 17.6 per cent of the miner. Five of them are registered in China, according to the FIRB, and one in the British Virgin Islands. Monday’s order — made via the Foreign Investment Review Board — is the latest development in the long-running saga targeting little-known Chinese-linked investors thought to be stalking Northern Minerals that has hampered efforts to advance its strategic Browns Range project in the East Kimberley. Western nations, including Australia and the US, have attempted to limit Chinese investment in so-called critical minerals and metals key for defence industries and the energy transition. Beijing has a near-monopoly on rare earth production and processing, and has weaponized export controls during trade disputes with the Trump administration since last year. “This decision was entirely consistent with advice from Treasury and the Foreign Investment Review Board, and is about protecting our national interest and ensuring compliance with our foreign investment framework,” a spokesman for Dr Chalmers said. “We operate a robust and non-discriminatory foreign investment framework, and will take further action if required to protect our national interest in relation to this matter.” In a statement released after it hit pause in trading of its shares, Northern Minerals said it was “currently considering the new disposal orders and will make a further announcement once it has done so”. It also noted a FIRB direction from April 1 regarding an additional 361.5 million shares in the company held by Hong Kong Ying Tak remained in effect. In a letter to Northern Minerals less than two months ago, the FIRB said it believed Chinese company Black Stone and individuals Xi Wang and Ximei Liu breached a compulsory share divestment order from Dr Chalmers in 2024 by transferring shares to Hong Kong Ying Tak. Hong Kong Ying Tak was at the time subsequently been banned from voting those 361.5 million Northern Minerals shares, or about 4 per cent of the company, at the WA-based group’s delayed AGM, which must be held by July. The latest order comes a month after Northern Minerals’ biggest shareholder, Beijing-based Vastness Investment Group, with 7.7 per cent, abruptly aborted attempts to overthrow Northern Minerals’ chair, Adam Handley, withdrawing a notice to requisition a shareholders meeting. The AGM was originally scheduled for November last year but has now been postponed twice after the company referred a series of what it described as “relevant matters” to FIRB. The upcoming meeting will also consider applications made by other Chinese-linked candidates to seize board seats. This boardroom tussle is thought to be part of a co-ordinated Chinese state-backed campaign to covertly seize control of Northern Minerals, which is seeking to develop the Browns Range rare earths project. The development is seen as important in helping break China’s stranglehold on critical minerals viewed as vital to the energy transition and defence hardware. Shares in the thinly-traded Northern Minerals were down 8.3 per cent to 2.2¢ at 10.50am. The Chinese Embassy in Canberra has been contacted for comment.