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Jim Chalmers has ordered six investors to dump shares in a rare earths mining company following concerns over Chinese influence over the company.
Companies registered in the British Virgin Islands, Hong Kong and Beijing, and two Chinese citizens are subject to the orders.
“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,” the Treasurer said on Monday.
Northern Minerals is developing a mine in remote WA that will produce minerals for semiconductors and defence equipment.
The ASX-listed company paused trading shortly before the sharemarket opened on Monday and posted another announcement an hour later.
The company told the ASX the new disposal orders related to about 1.7 billion company shares.
An entity called Hong Kong Ying Tak must divest some 93 million shares within 14 days; shares acquired on November 13, 2024. Mr Chalmers’ orders are contained in the company’s ASX announcement.
Real International Resources acquired a little more than 619 million shares over 18 months from 2023 to early 2025 and similarly must dump this stake within 14 days. This company is registered in the British Virgin Islands.
A Hong Kong-registered company – Qogir Trading and Service Co. – also has to get rid of about 523.5 million shares.
Chinese citizen Chuanyou Cong has been ordered to divest 130 million shares, as has Beijing-registered Vastness Investment Group.
Another Chinese national, Zhongxiong Lin, has been directed to offload 39.8 million shares.
In total, these entities hold 1.679 billion Northern Minerals shares – 17.5 per cent of the company – worth $40.4m.
In June 2025 Mr Chalmers filed Federal Court orders against two investors for alleged breaches of Australia’s foreign investment laws.
One of those entities was subject to orders a year prior to dispose of Northern Minerals shares.
The Federal Court then fined that entity – Indian Ocean International Shipping and Service Company – and its sole director – Chinese citizen Jing Tian – a combined $14m for not complying.
In January, Chinese company Vastness Investment Group, which held a 7.7 per cent stake in the miner, requested an extraordinary meeting to vote on the removal of Northern Minerals director Adam Handley.
That right to push back the annual general meeting has been argued through the courts, and the meeting now has to be held before June 30 this year.
Northern Minerals’ Browns Range project near the WA/Northern Territory border aims to produce the heavy rare earths dysprosium and terbium, used in clean energy, military and tech.
In April, the ASX was told about 60 per cent of the 613 million shares subject to Mr Chalmers’ original 2024 order had been transferred to Hong Kong Ying Tak.
Mr Chalmers then ordered Northern Resources not to recognise the company voting rights of Ying Tak.
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