Australia considers nationalizing Northern Minerals over divestment failure

Northern Minerals critical minerals rare earths resource nationalization gas market reform

Australian Resources Minister Madeleine King stated that the government is considering the nationalization of Northern Minerals, a Perth-based rare earth company, after investors with Chinese links refused to comply with divestment orders.

Northern Minerals is developing the Browns Range project in Western Australia, which is considered vital for establishing alternative supply chains for dysprosium and terbium—elements essential for renewable energy and advanced military equipment. Despite orders from Treasurer Jim Chalmers for six investors holding approximately 17% of the company to sell their shares by July 2, the investors have not complied.

Minister King criticized the refusal to follow Foreign Investment Review Committee (FIRB) decisions, calling the behavior “unacceptable.” The company is currently positioned as a key partner in efforts by Australia and the United States to reduce Chinese dominance in the critical minerals supply chain and is expected to receive approximately $500 million AUD in support from the U.S. Export-Import Bank.