Chinese Firms Defy Australian Order on Rare Earth Mining Stakes
Six Chinese-linked companies have resisted an Australian government order to divest from Northern Minerals Limited, which is essential for the production of dysprosium and terbium. This situation poses risks to national security and highlights ongoing tensions between Australia and China regarding critical mineral investments.
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On May 17, 2026, Australian Treasurer Jim Chalmers mandated that six Chinese-linked entities divest their holdings in Northern Minerals Limited, which is developing the Browns Range Heavy Rare Earths Project in Western Australia. The divestment deadline of July 2, 2026, passed without compliance, with approximately 1.7 billion shares valued at $40 million remaining with the original investors as of July 7.
Chalmers' action reflects concerns over national interest and compliance with foreign investment regulations. The Australian government has previously faced similar challenges, blocking other Chinese investments in critical minerals, suggesting a trend of increased scrutiny. Continued defiance from these investors poses strategic risks as Australia aims to secure its critical mineral supply chains.
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