Chalmers Orders Divestment of Chinese Holdings in Northern Minerals

• •Treasurer Jim Chalmers has ordered six Chinese-linked investors to divest from Northern Minerals.
• •The divestment is part of efforts to mitigate foreign influence in the critical minerals sector.
• •Investors have a two-week deadline to comply with the divestment order.

Federal Treasurer Jim Chalmers has mandated six Chinese-linked investors to divest their shares in Northern Minerals due to concerns over foreign influence in the rare earths sector, crucial for Australia's defense industry. This decision follows ongoing worries in Canberra about potential control by Chinese-backed entities over critical mineral resources. The investors have a two-week deadline to comply with the divestment order. This move aligns with a broader strategy to reduce reliance on China for critical minerals, especially after a significant $8.5 billion deal between the United States and Australia last October. The government aims to protect national interests and ensure adherence to foreign investment regulations.