Australia — Treasurer's FATA s.69(2) orders direct six China-linked investors to divest 1.68 billion Northern Minerals shares (Orders (No. 1) 2026)

Mechanism

The Treasurer exercised his power under section 69(2) of the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA) to make disposal orders against six named foreign persons holding beneficial interests in Northern Minerals Limited. The Orders (F2026N00326) were registered on the Federal Register of Legislation on 18 May 2026 and commence on 18 June 2026 (day 31 after registration). Each named investor must divest their entire shareholding within 14 days of commencement, i.e., by approximately 2 July 2026.

The six investors and share counts are:

Combined, the six investors hold approximately 17.6% of NTU's total shares on issue.

Context and relationship to prior enforcement actions

This is the second tranche of Treasurer-forced divestment of Chinese shareholders in Northern Minerals. The timeline:

1. June 2024 — Treasurer Chalmers issued original disposal orders under FATA s.69(2) against Chinese shareholders including Indian Ocean International Shipping on national security grounds related to Chinese control of the Browns Range dysprosium/terbium project. 2. January 2026 — Federal Court (Justice Perram) imposed AUD 14 million civil penalty on Indian Ocean International Shipping and its director Ms Jing Tian for non-compliance with the June 2024 orders (filed: 2026-01-30-australia-firb-northern-minerals-indian-ocean-penalty). 3. April 2026 — Treasurer issued interim directions preventing Hong Kong Ying Tak and related parties from transferring or voting their NTU shares pending investigation. 4. May 2026 (this action) — Second tranche disposal orders targeting six China-linked investors who acquired NTU shares after the June 2024 orders, countering the pattern of circumvention via related-party share transfers.

The s.69(2) FATA instrument (disposal order) is a distinct enforcement track from s.98 FATA (civil penalty for non-compliance): s.69(2) creates the divestment obligation; s.98 punishes breach of that obligation.

Strategic materiality

Browns Range is one of the few ex-China commercial-scale dysprosium and terbium deposits. Heavy rare earth elements — dysprosium (Dy) and terbium (Tb) — are critical inputs for permanent magnets used in EV motors, wind-turbine generators, and defence systems. China produces approximately 85%+ of global dysprosium/terbium supply; Browns Range represents one of the largest non-Chinese deposits currently under development.

This action is structurally counter to China's 2025 heavy rare earth export licensing regime (filed: 2025-04-04-china-mofcom-heavy-rare-earths-export-licensing): China restricts outbound REE supply while Australia restricts Chinese capital's inbound access to ex-China REE assets.

Downstream implications

• NTU shareholders face forced selling of ~17.6% of the register within a compressed 14-day

window; significant price pressure on the ASX: NTU register through late June/early July 2026

• The Treasurer's willingness to issue a second tranche signals FIRB is prepared to pursue

cumulative enforcement against Chinese accumulation in critical-mineral companies

• Companion instrument — Foreign Acquisitions and Takeovers (Interests in Northern Minerals

Limited No. 1) Directions 2026 — bars other foreign persons from disposing of NTU shares before the next AGM, suggesting FIRB is managing the full shareholder registry

Open questions

• Whether the six named investors will comply voluntarily or trigger further s.98 penalty

proceedings

• Identity of buyers who will absorb ~1.68 billion NTU shares in the 14-day forced-sale window
• Whether this signals a broader FIRB policy shift to pursue Chinese shareholders across other

critical-mineral juniors with similar share-registry patterns

Update — 13 July 2026 (see amendments)

A share-register review after the 2 July 2026 divestment deadline showed the majority of the 1.68bn shares subject to the May 2026 disposal orders remained registered to the ordered parties. Northern Minerals referred the apparent non-compliance to FIRB, and the Treasurer responded with interim directions stripping voting and other rights from three of the six investors — Hong Kong Ying Tak, Real International Resources, and Qogir Trading & Service, ~1.24bn shares (~13% of NTU) — pending resolution. See amendments: in the frontmatter for the structured record.