Australia tightens curbs on two Northern Minerals shareholders ordered to divest
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A truck carrying rare earths in Western Australia. Western governments are seeking to reduce reliance on China for supplies of the minerals.
PHOTO: REUTERS
Australia has tightened restrictions on two Northern Minerals shareholders ordered to divest their stakes over national security concerns, the miner said, extending scrutiny of Chinese-linked investment in the rare earths developer.
Northern Minerals is developing the Browns Range heavy rare earths project in Western Australia, as Western governments seek to reduce reliance on China for supplies of the minerals, which are used in semiconductors and defence equipment.
In May, Australian Treasurer Jim Chalmers ordered six offshore shareholders of Northern Minerals to divest their holdings over concerns that Chinese-linked parties were seeking control of the rare earths miner.
The company said on Aug 10 that he had amended interim directions covering Hong Kong Ying Tak, British Virgin Islands-registered Real International Resources, and Hong Kong-registered Qogir Trading & Service.
Under the latest instructions, Real International and Qogir cannot dispose of their shares unless the proposed sale is first notified to the Treasurer to confirm that the acquirer is not an associated party.
The six shareholders were ordered in May to divest a combined 1.68 billion Northern Minerals shares to non-associated parties by July 2.
Shares of Northern Minerals rose 3.9 per cent to 2.7 Australian cents on Aug 10, while the broader ASX200 index was down 0.33 per cent by the close of trading. REUTERS
