Australia just told six China-linked shareholders to get out of one of its most strategically important mining companies. Treasurer Jim Chalmers issued the divestment order targeting investors in Northern Minerals Ltd, a rare earths developer that sits at the center of a global tug-of-war over critical mineral supply chains.

Chalmers invoked Australia’s foreign investment laws to compel six shareholders to sell their stakes in Northern Minerals. The affected investors span mainland China, Hong Kong, and the British Virgin Islands. The core concern: effective Chinese control over a company that the West desperately needs to remain independent. Northern Minerals is developing the Browns Range project in Western Australia, which targets heavy rare earth elements like dysprosium and terbium. Once operational, Northern Minerals would represent the first significant non-Chinese source of processed dysprosium, with output processed at a new refinery in Australia.

This isn’t the first time Australia has flexed its foreign investment enforcement muscles in this space. In 2024, five investors were forced to divest from Northern Minerals under similar circumstances. When compliance didn’t come voluntarily, the government escalated to legal action in 2025.