Chinese fund not allowed to increase stake in Northern Minerals.
Last week we reported that Australia is not categorically ruling out Chinese investment in its commodities sector, but plans to closely examine such plans. This also applies if investors want to increase their shares in companies in this area. As now in the case of the Australian rare earth group Northern Minerals, whose largest shareholder, the Chinese Yuxiao Fund, had sought an increase from 9.92 to 19.9 percent. The Australian government has now prohibited this, How Reuters reported with reference to the mining company. The move was justified with reference to national interests. Northern Minerals is primarily specialized in the production of heavy rares, including the elements dysprosium and terbium, which are important for magnet production. The company already has an offtake agreement for its products with thyssenkrupp Materials Trading.
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