Australia sues China-linked rare earths investors
SYDNEY (Reuters) - Australia is suing a Chinese-linked company and a former associate over a breach of foreign investment laws linked with rare earths miner Northern Minerals, the national treasurer said on Thursday, adding it was the first case of its kind.
Indian Ocean International Shipping and Service Company was one of five foreign investors with ties to China subject to an order by Treasurer Jim Chalmers to divest shares on national interest grounds in June last year.
Chalmers said in a statement he had lodged a legal action in the Federal Court and was seeking penalties, declarations and costs.
'Foreign investors in Australia are required to follow Australian law,' Chalmers said. 'We are doing what is necessary to protect the national interest and the integrity of our foreign investment framework.'
The statement, which said the case was the first to be brought by a Treasurer before the Federal Court for an alleged breach of foreign investment laws, did not give details of the current stake holdings. It named Indian Ocean, but did not name the former associate.
Indian Ocean International Shipping and Service Company could not immediately be contacted for comment.
Australia has sought to build a rare earths supply chain to decrease China's dominance over the elements used in products from smartphones to wind turbines and missiles and radar systems.
Northern Minerals, a supplier of rare earths to a refinery being built by Iluka Resources in Western Australia, became a flashpoint for the contest after Australia blocked Singapore-based Yuxiao Fund from doubling its stake in the company to almost 20% in 2023.
Yuxiao, controlled by Chinese businessman Wu Tao, along with four other entities, including Black Stone Resources of the British Virgin Islands and Indian Ocean International Shipping and Service Company based in the United Arab Emirates, were ordered in 2024 to sell shares worth 10.37% of Northern Minerals' share capital within three months to unconnected associates.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 hours ago
- Yahoo
Surprise! Four-Day Work Weeks Make Employees Happier, Productive
The evidence is growing that a shorter work week is better not just for workers, but for employers as well. The largest-ever study of a four-day work week found that employees working fewer hours weren't just happier, but they also maintained productivity and had better job satisfaction, according to an article on the study published by Scientific American. In fact, the four-day work week was so successful that most companies kept the reduced schedule even after the study ended. Published in the journal Nature Human Behaviour, the study looked at 2,896 employees at 141 companies in the U.S., Australia, New Zealand, Canada, Ireland and the United Kingdom. Shorter Week, Less Stress Before shifting to the reduced four-day work week, companies involved in the study restructured their workflow to maintain 80% of a worker's weekly productivity by eliminating activities like unnecessary meetings. Some researchers suspected that the condensed schedule would lead to more stress for workers who hurried to get their tasks completed in time. 'When workers want to deliver the same productivity, they might work very rapidly to get the job done, and their well-being might actually worsen,' said lead author Wen Fan, a sociologist at Boston College in Massachusetts, in the Scientific American article. 'But that's not what we found.' Overall, workers felt better job satisfaction and reported better mental health after six months of the study. And while the study didn't look at whether companies' productivity levels dropped, it did say that 90% of companies kept the shorter work week even after the trial ended, indicating they weren't worried about a dip in profits. The study did leave some questions unanswered. For example, since employees self-reported the results, researchers wondered whether they over-emphasized the positive benefits in an effort to retain the extra day off. Read the original article on Investopedia
Yahoo
5 hours ago
- Yahoo
Capricorn Metals to acquire Warriedar Resources in Australia
Capricorn Metals and Warriedar Resources have announced a binding scheme implementation deed under which Capricorn will acquire 100% of the securities in Warriedar by way of a Court-approved scheme of arrangement. This acquisition is structured to provide Warriedar shareholders with a fixed exchange ratio of one new Capricorn share for every 62 Warriedar shares. Upon the implementation of the scheme, Warriedar shareholders will own approximately 4.36% of all issued shares in Capricorn. Based on Capricorn's closing price of A$9.60 ($6.32) per share on 23 July 2025, the transaction suggests a value of approximately A$0.155 per Warriedar share, which represents a 29% premium over Warriedar's closing share price of A$0.12 on 23 July 2025. The scheme is contingent upon several conditions including an independent expert's conclusion that it is in the best interests of Warriedar shareholders. Additionally, customary conditions such as regulatory approvals and the absence of material adverse changes must be satisfied. Capricorn gains ownership of Warriedar's flagship Golden Range project through the acquisition. The project encompasses the Ricciardo gold-antimony deposit and the Fields Find gold project, all situated 90km north of Capricorn's promising Mt Gibson gold project. Capricorn executive chairman Mark Clark said: 'This is a compelling transaction for all stakeholders, and we believe that combining Capricorn and Warriedar represents a unique opportunity to generate value for shareholders of both companies. 'This acquisition is on-strategy and continues the expansion of Capricorn's Mt Gibson exploration and development footprint and adds resource ounces, highly prospective exploration targets and valuable infrastructure, which will further enhance what is clearly one of the best development projects in the Australian gold industry.' In addition to the share acquisition, the parties have agreed on a separate scheme of arrangement for the outstanding Warriedar listed options. Under this option scheme, Warriedar listed options will be exchanged for new Capricorn options at the same exchange ratio as the share scheme. The existing A$0.10 exercise price per listed option will be adjusted to A$6.20, maintaining the same expiry date of 11 April 2028. The option scheme is conditional upon the approval of the scheme for Warriedar shares by the requisite majority. The Warriedar Board has unanimously recommended that listed optionholders vote in favour of the option scheme, provided no superior proposal emerges and an independent expert concludes that it is in the best interests of the option-holders. Additionally, Warriedar performance rights must be cancelled or vested as a condition of the scheme, with the resulting Warriedar shares subject to the scheme. Capricorn also intends to enter into private treaty arrangements with holders of unlisted options in Warriedar. Warriedar non-executive chairman Mark Connelly said: 'In addition to delivering an attractive premium, this transaction allows Warriedar shareholders to retain ongoing but significantly de-risked, exposure to the exploration and development of the Golden Range project, more diversified enterprise with a strong balance sheet, cash flow generation and technical expertise, all of which will support the successful exploration and development of the Ricciardo gold-antimony deposit.' Longreach Capital is serving as financial adviser for Capricorn, while Corrs Chambers Westgarth is the legal adviser for the scheme. Warriedar has engaged Discovery Capital Partners as its financial adviser and Thomson Geer as its legal adviser. In May, Sabre Resources completed the sale of its Ninghan gold project tenements in the southern Murchison region of Western Australia to Capricorn Metals for A$1.6m. "Capricorn Metals to acquire Warriedar Resources in Australia" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
5 hours ago
- Yahoo
The Australian Dollar Is Heating Up. Should You Buy It Here?
September Australian dollar futures (A6U25) present a buying opportunity on more price strength. See on the daily bar chart for the September Australian dollar futures that prices are trending higher and have just hit a nine-month high after producing a bullish upside breakout from the recent trading range. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator has just produced a bullish line crossover signal, whereby the red MACD line crossed above the blue trigger line. The bulls are in firm technical control. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Billionaire Peter Thiel is Betting Big on Stablecoins. Should You Buy the "MicroStrategy of Ethereum," Too? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Fundamentally, the commodity-export-driven Australian economy is healthy. Australia generally has a strong and resilient economy, seeing consistent growth, a diversified workforce, and a high level of economic freedom. A move in the September Aussie dollar above chart resistance at this week's high of .6631 would become a buying opportunity. The upside price objective would be .6950, or above. Technical support, for which to place a protective sell stop just below, is located at .6500. IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature. Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you. On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
