Yahoo Finance Australia Orders China-Linked Investor to Sell Rare Earths Stake
(Bloomberg) -- Australia has ordered Chinese-linked Yuxiao Fund and its associates to sell their stakes in rare earths miner Northern Minerals Ltd., part of an effort by US allies to counter the Asian nation’s dominance of critical minerals.
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Treasurer Jim Chalmers cited protecting the national interest as behind his decision, announced Monday. Along with Yuxiao Fund, its associates Indian Ocean International Shipping and Service Ltd., Black Stone Resources Ltd., and Chinese nationals Xi Wang and Ximei Liu were ordered to sell their stock in the Sydney-listed company.
Australia, the US and some other Western nations are attempting to limit investment in metals and minerals critical for the energy transition by China, which has had a near-monopoly on production and processing of rare earths used in magnets. Yuxiao Fund had previously tried to build its stake in Northern Minerals to 19.99%, which was blocked under foreign investment laws last year.
Singapore-based Yuxaio Fund and its associates hold at least a combined 7.55% of the Northern Minerals, according to Bloomberg figures. It is unclear what interest Indian Ocean International Shipping and Service holds, but the government said it was a top shareholder.
--With assistance from Ben Westcott.
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