The Australian federal government is reportedly closely monitoring the bidding process for a large rare earth project in Western Australia, with observers suggesting it could become the Albanese government’s latest case involving Chinese capital under foreign investment review. The development follows earlier federal orders requiring multiple China-linked shareholders to divest from Northern Minerals, indicating a continued tightening of national security scrutiny over critical minerals investments.
According to The Australian, the Yangibana rare earth project in Western Australia, owned by mining magnate Andrew Forrest’s Wyloo Metals, is seeking to sell a 60% controlling stake and has attracted competing bids from both Chinese and U.S. companies. Sources said the federal government has taken note of interest from Chinese firms including Shenghe Resources Holding Co., Ltd.
Previously, Treasurer Jim Chalmers ordered six China-linked companies and individuals to divest all or part of their holdings in Northern Minerals by July 2026, involving about 1.68 billion shares, or roughly 17.58% of the company’s total share capital. The government argued that these shareholders were engaged in “coordinated action” that could delay the development of the Browns Range heavy rare earth project in Western Australia.
The mine contains critical heavy rare earths such as dysprosium and terbium, which are regarded as strategic resources for the military and high-tech industries. Northern Minerals later expressed support for the government’s decision, saying it would benefit the company’s future development. Following the announcement, its share price surged by more than 21% at one point.
China’s Foreign Ministry criticized Australia for broadening the concept of national security and interfering in normal commercial investment. Spokesperson Guo Jiakun stated that China opposes restrictions on Chinese companies under the pretext of national security and urged Australia to protect the legitimate rights and interests of Chinese investors and maintain a fair, transparent, and non-discriminatory business environment.