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Australia blocks Chinese investment in rare earths producer on national interest grounds
- The Singapore-registered Yuxiao Fund, an investment vehicle of Chinese national Yuxiao Wu, was blocked from raising its ownership of Northern Minerals
- Australian PM Anthony Albanese said earlier that he favours using rare earths and other critical minerals to make batteries in Australia
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Northern Minerals Ltd on Tuesday said Australia’s government has blocked the heavy rare earths producer’s largest shareholder, China’s Yuxiao Fund, from increasing its investment on the grounds of national interest.
Yuxiao Fund sought Foreign Investment Review Board approval in August to raise its ownership to 19.9 per cent from 9.92 per cent. A government register showed Treasurer Jim Chalmers signed a prevention order on February 15.
The Singapore-registered fund is an investment vehicle of Chinese national Yuxiao Wu, who also owns miners in Mozambique supplying lower-grade rare earths to China, said Northern Minerals Executive Chairman Nick Curtis.
“There is a special category of assets for any government to protect its national interest,” Curtis said.
The Yuxiao Fund could not be reached for comment. The Australian Treasurer’s office, which would be responsible for blocking such an investment based on the advice of the review board, declined to comment.
China has criticised Australia for previously blocking Chinese investment on national security grounds, saying this contributed to a years-long diplomatic freeze.
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