Australia orders Chinese-linked investors to divest Northern Minerals shares over national security concerns
Consensus Summary
Australia’s Treasurer Jim Chalmers ordered six Chinese-linked investors to divest 1.679 billion shares (17.5%) in Northern Minerals, a Western Australian rare earths miner, within 14 days to protect national security. The investors, including Hong Kong Ying Tak, Real International Resources, and Beijing-registered Vastness Investment Group, hold stakes worth $40.4 million. The move follows a long-running dispute over control of Northern Minerals, which is developing the Browns Range mine to produce dysprosium and terbium for defence, clean energy, and tech. Chalmers cited repeated breaches of foreign investment laws, including a 2025 Federal Court case where a Chinese-linked entity and its director were fined $14 million for non-compliance. The government has previously blocked Chinese investors from increasing stakes in Northern Minerals, and the latest orders come after allegations that some investors transferred shares to circumvent earlier divestment demands. Northern Minerals, backed by a $500 million US funding commitment, is seen as critical to reducing reliance on China’s rare earths supply chain.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Federal Treasurer Jim Chalmers ordered six investors (Hong Kong Ying Tak, Real International Resources, Qogir Trading & Service Co., Chuanyou Cong, Vastness Investment Group, Zhongxiong Lin) to divest 1.679 billion Northern Minerals shares (17.5% stake) within 14 days.
- Northern Minerals is developing the Browns Range mine in remote Western Australia to produce dysprosium and terbium for semiconductors, defence, and clean energy.
- The divestment orders were issued on May 18, 2026, with the shares worth approximately $40.4 million.
- Vastness Investment Group (Beijing-registered) was previously involved in a legal dispute over removing Northern Minerals director Adam Handley, with an extraordinary meeting now required by June 30, 2026.
- In June 2025, Chalmers filed Federal Court orders against two investors for alleged breaches of Australia’s foreign investment laws, including a $14 million fine for Indian Ocean International Shipping and Service Company and its director Jing Tian.
- Northern Minerals shares were paused in trading shortly before the market opened on May 18, 2026, due to the divestment orders.
Points of Difference
Details reported by only one source:
- Hong Kong Ying Tak must divest 93 million shares acquired on November 13, 2024.
- Real International Resources acquired 619 million shares over 18 months from 2023 to early 2025.
- Qogir Trading and Service Co. (Hong Kong) must divest 523.5 million shares.
- Chuanyou Cong (Chinese citizen) must divest 130 million shares, and Zhongxiong Lin (Chinese national) must divest 39.8 million shares.
- In April 2026, the ASX was told about 60% of the 613 million shares subject to Mr Chalmers’ original 2024 order had been transferred to Hong Kong Ying Tak, leading to a denial of voting rights for Ying Tak.
- The Federal Court fined Indian Ocean International Shipping and Service Company and its director Jing Tian a combined $14 million for non-compliance in 2025.
- The government has previously blocked a Chinese-linked investment vehicle, Yuxiao Fund, from increasing its stake in Northern Minerals in 2023.
- The Foreign Investment Review Board wrote to Northern Minerals earlier in 2026, alleging three blocked investors breached orders by transferring shares to Hong Kong Ying Tak.
- Northern Minerals is on track for about $500 million in funding from the Export Import Bank of the United States.
- John Coyne from the Australian Strategic Policy Institute stated the government 'appears to have concluded' that China-based investors 'ignored repeated direction.'
- The Browns Range pilot plant is located in the remote East Kimberley near the NT border.
Where the reporting differs
Details that conflict, or appear in only some outlets:
- Newscomau states the divestment orders relate to 1.7 billion shares, while ABC reports 1.679 billion shares (17.5% stake).
- Newscomau specifies Chuanyou Cong and Zhongxiong Lin as Chinese citizens/nationals, while ABC only lists them as investors without specifying citizenship status.
Source Articles
Chalmers’ big call on Chinese investors
Six investors of a crucial West Australian rare earths mine have been ordered to dump their shares over concerns about Chinese control of the project.
Federal government steps in on China-linked Northern Minerals investors
The federal treasurer orders another six companies to divest their holdings in Northern Minerals as concerns grow in Canberra that Chinese-backed investors are trying to seize control of the rare earths mining company.