Australia has been told to “earnestly respect the legitimate rights and interests of Chinese investors” after the Albanese government forced several Beijing-linked companies and individuals to sell their stake in a critical minerals project.
Treasurer Jim Chalmers on Monday ordered six investors based in China, Hong Kong and the British Virgin Islands to divest millions of shares that they hold in WA-based Northern Minerals after previous formal directions were ignored.
Hong Kong Ying Tak Ltd, Real International Resources Ltd, Qogir Trading & Service Co Ltd, Chuanyou Cong, Vastness Investment Group Ltd and Zhongxiong Lin — have been directed to divest their holdings within 14 days.
The Prime Minister says a decision to remove a group of Chinese investors from one of the country’s most significant critical mineral deposits is about protecting Australia’s national interest and sovereignty.
On Monday, six companies and individuals based in China, Hong Kong and the British Virgin Islands were issued orders by the Treasurer to divest millions of shares that they hold in Northern Minerals after previous formal directions were ignored.
The company entered a trading halt shortly after Jim Chalmers directed 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 rare earths miner, which has its headquarters in Perth.
The order from 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, which has hampered efforts to advance its strategic Browns Range project in the East Kimberley.
Northern Minerals is seen as a key player in efforts by Australia and the US to break China’s stranglehold on the critical minerals supply chain and has received support from Export Finance Australia and the US Export-Import Bank.
When making his announcement, Dr Chalmers cited the protection of Australia’s “national interest”, but China’s Foreign Ministry has declared it “consistently opposes overstretching the concept of national security to disrupt normal investment activities”.
“Australia should earnestly respect the legitimate rights and interests of Chinese investors and provide a fair, transparent and non-discriminatory business environment for foreign investment,” Foreign Ministry spokesman Guo Jiakun told reporters in Beijing.
Western nations, including Australia and the US, have attempted to limit Chinese investment in so-called critical minerals and metals key to defence industries and the energy transition.
Shortly after arriving in Perth for a two-day visit, Prime Minister Anthony Albanese defended his government’s foreign investment ruling, saying it was about protecting Australia’s national interest and sovereignty.
“Chinese investment in Australia is, of course, legitimate, but it’s the job of the Foreign Investment Review Board and the Treasurer, of course, to get those reports to make sure that Australia’s national interest is looked after,” Mr Albanese told ABC Perth.
“One of the things that we have said is that when it comes to critical minerals, rare earths, some of these essentials we want Australian ownership of it, because it’s so important for our sovereignty going forward.”
Following last week’s meeting between China’s President Xi Jinping and US counterpart Donald Trump, Beijing used carefully calibrated language to suggest possible stabilisation in rare earth supply tensions, without confirming any specific agreement.
When asked whether both nations had reached a new understanding regarding rare earth supplies, spokesman Guo Jiakun responded his country “always been committed to maintaining the stability and security of global industrial and supply chains”.
Analysts have suggested the comments could represent a breakthrough despite sounding like a routine answer, with no specific confirmation of a particular deal.
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