Australia Forces China-Linked Investors to Sell Shares in Rare Earths Company
Australia has ordered several investors linked to China to sell their shares in a rare earths company called Northern Minerals. This decision was made to protect the country’s rare earths sector from foreign control.
Northern Minerals is trying to challenge China’s dominance in producing dysprosium, a rare earth mineral used in high-performance magnets for electric vehicles. Chinese investors have been buying large amounts of shares in the company, even attempting to influence its leadership.
In November 2025, Northern Minerals asked Australia’s foreign investment review board to investigate concerns about a potential takeover by foreign interests. Treasurer Jim Chalmers announced that six shareholders would be forced to sell their stakes in the company.
Three of these shareholders were based in China, two in Hong Kong, and one in the British Virgin Islands. Among them was Vastness Investment Group, a Beijing-based company with more than 6% ownership in Northern Minerals. Another shareholder, Qogir Trading and Service Company from Hong Kong, held nearly 5% of the shares.
Australia has been working for two years to prevent Chinese investors from gaining control of Northern Minerals. In 2024, similar measures were taken against a different group of Chinese investors.
Northern Minerals owns a large dysprosium deposit in Western Australia and claims to be a reliable alternative to China-based production. Currently, nearly all dysprosium is produced in China.
The Yuxiao Fund, a China-linked entity, had also tried to increase its stake in Northern Minerals in 2024 but was required by Australian authorities to sell its shares.
Trading of Northern Minerals’ shares on the Australian Securities Exchange was halted on May 18. The company said it is reviewing the new requirements and will provide further updates soon.
This move by Australia reflects global efforts to diversify supply chains for rare earths, which are critical for technology and defense industries.