Australian Treasurer Jim Chalmers takes questions from the media in Canberra, Australia at Parliament House on May 13, 2026. Hilary Wardhaugh/Getty Images
Six Chinese-linked companies have refused to comply with Australian Treasurer Jim Chalmers’ order to divest their stakes in a Perth-based rare earth mining company.
On May 17, Chalmers issued the order requiring the China-linked companies and individuals to sell their shares in Northern Minerals Limited.
The company is developing the Browns Range Heavy Rare Earths Project in Western Australia, a source of dysprosium and terbium—critical rare earth elements used in electric vehicles, wind turbines, and defence applications.
The affected shares, numbering about 1.7 billion, were worth $40 million (US$27.7 million) and accounted for 17.58 percent of the company’s total shares:
- Hong Kong Ying Tak Limited (Hong Kong): 95,328,713 shares.
- Real International Resources Limited (British Virgin Islands): 619,071,000 shares.
- Qogir Trading & Service Co., Limited (Hong Kong): 523,463,250 shares.
- Cong Chuanyou (China): 130,056,866 shares.
- Vastness Investment Group Limited (China): 271,250,091 shares.
- Lin Zhongxiong (China): 39,725,860 shares.
At the time, Chalmers said the decision was about “protecting our national interest and ensuring compliance with our foreign investment framework.”
The deadline for the divestment passed on July 2, but the Chinese investors made no attempt to comply with the order, according to an ASX (Australian Securities Exchange) announcement.
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On July 7, Northern Minerals Limited revealed that the shares still remained in the hands of the original investors.
“Northern Minerals notes that, based on the Company’s updated register of its members (effective two trading days post the 17 May 2026 Disposal Orders Divestment Date of 2 July 2026), a majority of the shares that were the subject of the 17 May 2026 Disposal Orders remain registered in the names of the persons the subject of the 17 May 2026 Disposal Orders,” the statement read.
The company also said it would provide relevant share registry information to the Treasury’s Foreign Investment Division to assist the department in assessing compliance.
“The company will keep the market updated as this process continues in accordance with its continuous disclosure obligations,” it said.
Australia is not the not the only country that has taken action to prevent Chinese-linked entities from acquiring local rare earth mining companies.
In 2022, the Canadian government ordered three Chinese companies to divest their investments in local critical minerals miners on national security grounds.
The Epoch Times has reached out to the Australian Treasury for comment.
