Northern Minerals Ltd (ASX:NTU) has notified Treasury that China-linked investors ordered to sell down their holdings in the company appear to have largely retained their stakes, escalating a foreign investment compliance issue around one of Australia’s key heavy rare earths projects.
The company, which is developing the Browns Range Heavy Rare Earths Project in Western Australia’s Kimberley region, told ASX investors it had reviewed its share register following a divestment order issued by Treasurer Jim Chalmers on May 17.
That order required six investors with links to China to divest a combined 17.58% stake in Northern Minerals by July 2.
Shares remain on register
A majority of the shares subject to the disposal orders remain on NTU's register in the names of the same persons captured by the Treasurer’s decision.
The company said it would now provide the information to the Foreign Investment Division of the Department of Treasury, known as FIRB, to assist the Treasurer and FIRB in determining compliance with the orders.
The latest update suggests the May divestment order has not yet resulted in the required sell-down by the relevant shareholders.
Critical minerals scrutiny
The order comes amid heightened scrutiny of foreign investment in Australia’s critical minerals sector, particularly where assets are considered strategically important to supply chains for defence, clean energy and advanced manufacturing.
Northern Minerals’ Browns Range project is focused on heavy rare earths, a group of minerals used in high-performance magnets and other technologies.
In late May, China criticised the Australian government’s approach to critical minerals investment and described the divestment move as irrational.