China has lashed out at Australia after the Albanese government forced several Beijing-linked companies and individuals to divest their stake in a critical minerals project, with Beijing demanding Canberra “earnestly respect the legitimate rights and interests of Chinese investors”.
Divestment Orders Issued
Treasurer Jim Chalmers on Monday ordered six investors based in China, Hong Kong, and the British Virgin Islands to sell millions of shares they hold in Western Australia-based Northern Minerals, after previous formal directions were ignored. The entities include Hong Kong Ying Tak Ltd, Real International Resources Ltd, Qogir Trading & Service Co Ltd, Chuanyou Cong, Vastness Investment Group Ltd, and Zhongxiong Lin. They have been directed to divest their holdings within 14 days.
National Interest and Sovereignty
Prime Minister Anthony Albanese defended the decision, stating it is 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 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.”
Details of the Stake
The company entered a trading halt shortly after the Treasurer’s directive. Together, the six investors hold an interest of almost 1.7 billion shares worth just under $41 million, representing 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 a long-running saga targeting little-known Chinese-linked investors thought to be stalking Northern Minerals, hampering efforts to advance its strategic Browns Range project in the East Kimberley.
Strategic Importance
Northern Minerals is seen as a key player in efforts by Australia and the United States to break China’s stranglehold on the critical minerals supply chain. The company has received support from Export Finance Australia and the US Export-Import Bank.
China’s Response
When making his announcement, Dr Chalmers cited the protection of Australia’s “national interest”, but China’s Foreign Ministry declared it “consistently opposes overstretching the concept of national security to disrupt normal investment activities”. Foreign Ministry spokesman Guo Jiakun told reporters in Beijing: “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.”
Broader Context
Western nations, including Australia and the US, have attempted to limit Chinese investment in critical minerals and metals key to defence industries and the energy transition. 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 that his country “has 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 routine, with no specific confirmation of a particular deal.
