Treasurer Orders Divestment of 17.6% NTU Shares Over National Security Concerns

Treasurer’s Disposal Orders Target 17.6% of Northern Minerals Shares

The Australian Treasurer has exercised his powers under the Foreign Acquisitions and Takeovers Act 1975 to compel six foreign shareholders to divest approximately 1.68 billion shares in Northern Minerals Limited (ASX:NTU), representing 17.58% of the company’s total shares. These disposal orders, issued on 17 May 2026, require the affected parties to sell their holdings by 2 July 2026, citing national security concerns linked to the strategic importance of Northern Minerals’ rare earth assets.

The affected shareholders include entities registered in Hong Kong, China, and the British Virgin Islands, such as Hong Kong Ying Tak Limited, Real International Resources Limited, and Qogir Trading & Service Co., Limited. Notably, the orders build on previous FIRB investigations and interim directions, including those restricting voting rights of Hong Kong Ying Tak Limited over 361 million shares. Northern Minerals continues to cooperate fully with regulatory authorities in this evolving situation, which has already delayed the company’s 2025 Annual General Meeting, now scheduled no later than 30 June 2026. The company is actively assessing the orders’ impact on the AGM timetable. This regulatory pressure reflects the government’s heightened scrutiny of foreign ownership in critical minerals firms, particularly those involved in the supply of heavy rare earths essential for defence and clean energy technologies.

Northern Minerals Embraces Alignment with National Security Interests

Executive Chair Adam Handley welcomed the Treasurer’s orders, describing them as an important step towards aligning Northern Minerals’ shareholder register with Australia’s national security priorities. He emphasised the company’s commitment to a level playing field for all shareholders, balanced against the requirements of Australia’s foreign investment regime. Handley highlighted that maintaining a transparent, compliant share register is critical for securing funding and advancing the Browns Range Heavy Rare Earths Project, a globally significant deposit of dysprosium, terbium, and yttrium located in Western Australia’s East Kimberley region.

Handley also noted that this marks the fourth occasion in just over three years where the Federal Government has intervened in Northern Minerals’ share register on national security grounds. The company remains confident that ongoing government support will enable it to progress Browns Range in line with Australia’s strategic interests. This stance underscores the broader ambition to build sovereign capability in critical minerals supply chains, supported by the Federal Government’s Critical Minerals Strategy and international partnerships.

Browns Range Project Advances Amid Regulatory Challenges

Northern Minerals is targeting a Final Investment Decision for Browns Range by 30 September 2026, aiming for first production in late 2028 or early 2029 to meet forecast global shortfalls in key heavy rare earths. The company has secured conditional funding support from both the Export-Import Bank of the United States and Export Finance Australia, reflecting the strategic importance of the project within allied nations’ supply chains.

A cornerstone of Browns Range’s commercial pathway is a binding agreement with Iluka Resources (ASX:ILU) to supply approximately 65% of its dysprosium and terbium-rich xenotime concentrate to Iluka’s Eneabba rare earths refinery in Western Australia. Iluka is currently completing construction of Eneabba with substantial Australian Government funding of around A$1.6 billion. This partnership is pivotal for establishing a secure, localised rare earths processing capability outside China, the dominant global supplier.

Despite the regulatory headwinds, Northern Minerals has maintained a focus on advancing its project funding discussions and progressing its definitive feasibility study outcomes. The company’s recent operational and financial updates have shown steady progress, including a robust cash position and ongoing exploration success at Browns Range’s Wolverine deposit, which is considered Australia’s highest-grade source of dysprosium and terbium.

These developments occur against a backdrop of increasing government intervention in Northern Minerals’ shareholder composition, as demonstrated by the recent Treasurer Orders Divestment of 1.68 Billion shares and earlier Treasurer Blocks Hong Kong Firm’s Voting restrictions. The company’s ability to navigate these challenges while securing funding and maintaining project momentum will be crucial in the months ahead.