Northern Minerals (ASX:NTU) is considering its options after Treasurer of Australia Jim Chalmers ordered China-linked entities to sell their shares in the heavy rare earths mining company.
Chalmers set a 14-day deadline for Hong Kong Ying Tak, Real International Resources, Qogir Trading and Service Co., Chuanyou Cong, Vastness Investment Group, and Shongxiong Lin to dispose of their combined 17.5% stake.
Mining.com.au understands that the deal is worth a combined $40.1 million based on Northern Minerals’ $229.16 million market capitalisation at the time of writing.
Chalmers expressed deep concerns that the six investors had attempted to seize control of Northern Resources on behalf of the Chinese Communist Party.
“We operate a robust and non-discriminatory foreign investment framework and will take further action if required to protect our national interest in relation to this matter,” the treasurer tells Reuters.
“This decision was entirely consistent with advice from [the Australian] Treasury and the Foreign Investment Review Board — it is about protecting our national interest and ensuring compliance with our foreign investment framework,” he adds, according to the Australian Associated Press.
Northern Minerals recognises that the treasurer can exercise powers under the Foreign Acquisitions and Takeovers Act to order disposals against “various persons holding interests in NTU shares”.
“The new disposal orders relate to 1,678,895,780 of NTU shares … [and] the company also notes that the interim directions contained in the Foreign Acquisitions and Takeovers (Interests in Northern Minerals Limited No. 1) Directions 2026, which relate to an additional 361,538,264 shares in the company, remain in effect,” the company says.
“The company is currently considering the new disposal orders and will make a further announcement once it has done so.”
NTU shares dropped 8.4% to $0.022 per unit on 18 May 2026. That price is less than half of the equity it issued in an October 2025 placement, according to Reuters.
Chalmers previously imposed an interim order on Hong Kong Ying Tak in April 2026 to limit its voting rights at the NTU annual meeting and stake-sale options.
Hong Kong Ying Tak had reportedly purchased shares from up to five Beijing-linked investment entities, which the federal government had earlier ordered to sell their stakes back in 2024.
Northern Minerals is a heavy rare earths mining company with assets in Western Australia’s Kimberly region.
Write to Richard Szabo at Mining.com.au
Images: Northern Minerals
