Latest news with #NorthernMinerals
Sydney Morning Herald
30-06-2025
- Business
- Sydney Morning Herald
Australia's lawsuit over rare minerals is a geopolitical litmus test
In a move that would have been unthinkable a decade ago, Treasurer Jim Chalmers has launched a Federal Court lawsuit to force Chinese-linked entities to divest from a key rare earth miner. This isn't just a legal dispute; it's a test of whether Australia is willing to enforce its sovereignty in the face of economic intimidation and strategic competition. The test is one of enforcing set red lines or, in Seinfeld parlance, not just knowing how to make a reservation but knowing how to hold a reservation. That's why, if we're serious about holding onto the strategic advantages of our critical minerals sector and not just making short-term profits, this is a moment for resolve. At the heart of the matter is Northern Minerals, an Australian company developing the Browns Range heavy rare earths project in WA. It is an operation that could become one of the first non-Chinese sources of the critical minerals essential for advanced military systems, clean energy technologies and high-end electronics. Despite a clear directive from Chalmers last year for five Chinese-linked entities to divest their stakes in Northern Minerals, at least one, Indian Ocean International Shipping and Service Company Ltd, allegedly failed to comply. Now, in a move that's both unprecedented and essential, the Commonwealth is suing. Yes, we are dealing with companies but there really is no such thing as the Chinese private sector. As much as the Australian government will rightly make the case for this being about a commercial matter, this is all about the threat from the Chinese government and its objective of controlling critical minerals not just as economic leverage but as a strategic weapon. Loading It's deeply concerning that foreign investors have openly defied a directive from the Australian government. That would never be tolerated by Beijing. In China, foreign companies must abide by a highly restrictive, state-controlled investment environment or risk being expelled immediately. Yet in Australia, even after years of intensifying economic coercion and evidence of strategic interference, certain state-linked actors have come to believe that our foreign investment laws are optional or that the fear of retaliatory action by Beijing would result in Australian inaction. To the credit of the government, this lawsuit challenges that dangerous assumption head-on. Chalmers' statement was unequivocal: 'Foreign investors in Australia are required to follow Australian law.' What is at stake isn't just legal precedent – it's Australia's ability to protect the integrity of its critical minerals sector. These minerals – such as dysprosium, terbium and neodymium – are the foundational inputs for technologies ranging from F-35 fighter jets and hypersonic missiles to electric vehicles and offshore wind turbines.
The Age
30-06-2025
- Business
- The Age
Australia's lawsuit over rare minerals is a geopolitical litmus test
In a move that would have been unthinkable a decade ago, Treasurer Jim Chalmers has launched a Federal Court lawsuit to force Chinese-linked entities to divest from a key rare earth miner. This isn't just a legal dispute; it's a test of whether Australia is willing to enforce its sovereignty in the face of economic intimidation and strategic competition. The test is one of enforcing set red lines or, in Seinfeld parlance, not just knowing how to make a reservation but knowing how to hold a reservation. That's why, if we're serious about holding onto the strategic advantages of our critical minerals sector and not just making short-term profits, this is a moment for resolve. At the heart of the matter is Northern Minerals, an Australian company developing the Browns Range heavy rare earths project in WA. It is an operation that could become one of the first non-Chinese sources of the critical minerals essential for advanced military systems, clean energy technologies and high-end electronics. Despite a clear directive from Chalmers last year for five Chinese-linked entities to divest their stakes in Northern Minerals, at least one, Indian Ocean International Shipping and Service Company Ltd, allegedly failed to comply. Now, in a move that's both unprecedented and essential, the Commonwealth is suing. Yes, we are dealing with companies but there really is no such thing as the Chinese private sector. As much as the Australian government will rightly make the case for this being about a commercial matter, this is all about the threat from the Chinese government and its objective of controlling critical minerals not just as economic leverage but as a strategic weapon. Loading It's deeply concerning that foreign investors have openly defied a directive from the Australian government. That would never be tolerated by Beijing. In China, foreign companies must abide by a highly restrictive, state-controlled investment environment or risk being expelled immediately. Yet in Australia, even after years of intensifying economic coercion and evidence of strategic interference, certain state-linked actors have come to believe that our foreign investment laws are optional or that the fear of retaliatory action by Beijing would result in Australian inaction. To the credit of the government, this lawsuit challenges that dangerous assumption head-on. Chalmers' statement was unequivocal: 'Foreign investors in Australia are required to follow Australian law.' What is at stake isn't just legal precedent – it's Australia's ability to protect the integrity of its critical minerals sector. These minerals – such as dysprosium, terbium and neodymium – are the foundational inputs for technologies ranging from F-35 fighter jets and hypersonic missiles to electric vehicles and offshore wind turbines.
The Age
27-06-2025
- Business
- The Age
Chalmers hits China-linked companies with landmark lawsuit over crucial military minerals
Treasurer Jim Chalmers has launched an unprecedented lawsuit against China-linked interests to force them to sell their stake in an Australian rare earths miner, whose products are crucial to warplanes, missiles and submarines. The lawsuit, filed in the Federal Court on Thursday against foreign investors in Northern Minerals, is also seeking financial penalties for allegedly refusing to obey Chalmers' direction to sell out of the company last year. The Australian-listed company is developing the Browns Range heavy rare earths project in remote northern Western Australia, which could be one of the first non-Chinese sources of the minerals used in military guidance systems, wind turbines and electric vehicles. Chalmers' court action against an entity called Indian Ocean International Shipping and Service Company Ltd and a former associate follows his order last year for five Chinese-linked groups to sell their shares in Northern Minerals to unconnected buyers by September. 'Foreign investors in Australia are required to follow Australian law,' Chalmers said in a statement. 'We are doing what is necessary to protect the national interest and the integrity of our foreign investment framework.' China's control of rare earths and critical products is an escalating cause of concern to the United States and countries like Australia, after Donald Trump's trade war prompted Beijing to restrict shipments of the materials. It has made similar moves before, including against Japan in 2010 during a territorial dispute. China controls nearly all of the world's heavy rare earth production and Australian Strategic Policy Institute senior fellow Ian Satchwell said the global superpower's interests were seeking to exert influence over Northern Minerals. 'Australia, with like-minded partner nations, is seeking to build alternative supply chains for rare earths and other critical minerals, and the Northern Minerals shenanigans are a very obvious example of China-linked bad faith investing to allegedly seek to disrupt those efforts,' Satchwell said. 'In Australia's case those rare earths are used for things such as F35 fighters, missiles attached to them and in the future, nuclear-powered submarines.'
Forbes
27-06-2025
- Business
- Forbes
Australian Legal Action Against Chinese Rare Earth Investors
A strategically important deposit of rare earths in Australia is the prize in a legal brawl which erupted earlier today when the Australian Government launched its first case for alleged breaching of foreign investment laws against a group of shadowy Chinese investors. Australia's Treasurer (Finance Minister) Jim Chalmers said the action was being taken against Indian Ocean International Shipping and Service Company for failing to comply with an order to sell shares in a rare earth project developer, Northern Minerals. Australian Treasurer Jim Chalmers. (Photo by) Indian Ocean and five associated foreign investors were ordered last year to sell the shares they had acquired in Northern which owns the Browns Range rare earth project in the far north of Western Australia. Browns Range is rich in dysprosium and terbium two of the most valuable rare earths with specialist uses in industrial and defence equipment. China dominates current supply. Both dysprosium and terbium were on a list of materials which China temporarily banned from export to the U.S. earlier this year. Terbium was also recently added to the inventory of products produced by Australia's Lynas Rare Earths which is working closely with the U.S. Government on rare earth refining. The Northern Minerals project at Browns Range is reported to contain the biggest deposit of dysprosium and terbium outside China. Military Uses The company, in a background note, said dysprosium and terbium were used in the production of magnets for military, clean energy, and high technology industries. 'Dysprosium and terbium are prized because their unique properties improve the durability of magnets by increasing their resistance to demagnetization, Northern Minerals said. "The flagship deposit in Browns Range is Wolverine which is thought to be the highest-grade dysprosium and terbium orebody in Australia. Periodic symbol and diagram of Dysprosium illustration 'The company is preparing to bring Wolverine into production with the objective of providing a reliable alternative source of dysprosium and terbium to production sourced from China.' Chalmers said in a statement that he was doing what was 'necessary to protect the national interest and Australia's foreign investment framework'. He did not name any individuals in the compulsory share sale (disposal) order but last year there were five groups of investors said to have been ordered to sell their Northern Minerals shares including a business called Yuxiao and individuals named as Ximei Liu and Xi Wang. The Australian Financial Review newspaper said Yuxiao is close to China-based Shenghe Resources and China Northern. Ordered To Sell Today's case against the Chinese investors is said to focus on the fact that they have defied the original order to sell stock as required by Australian law. Browns Range is being developed in association with a rare earth refinery being built in the south of Western Australia by Lynas Rare Earths. Northern Minerals told the Australian Stock Exchange that it was not party to the government action against the Chinese investors.
Bloomberg
27-06-2025
- Business
- Bloomberg
Australian Treasurer Sues Foreign Investor in Rare Earths Miner
Australian Treasurer Jim Chalmers has started the first legal case in the Federal Court for an alleged breach of the nation's foreign investment laws, saying a shareholder in a rare earths company failed to heed his order to sell its stake. Indian Ocean International Shipping and Service Company Ltd. was one of five foreign investors ordered by Chalmers a year ago to sell its shares in Australian-listed Northern Minerals Ltd. within three months. It hasn't complied, the treasurer said in a statement on late Thursday.
