Chinese investors attempt covert takeover of Australian mining company

A long-standing struggle between Northern Minerals and Chinese investors reveals the global battle over rare-earth minerals as countries seek to reduce reliance on China.

Michael E. Miller reports for The Washington Post.

In short:

• Northern Minerals, an Australian mining company, discovered possible proxy purchases by Chinese investor Wu Tao, who had been blocked from increasing his stake due to national security concerns.
• The Australian government ordered Wu Tao’s company and four others to sell their shares, but the companies have not yet complied with the divestment order.
• The case highlights the broader effort by Western countries to secure rare-earth supplies independent of China's dominance.

Key quote:

“When in the history of the global economy has a monopolist willingly given up their position in the market?”

— Amanda Lacaze, CEO of Lynas

Why this matters:

Control over rare-earth minerals is critical as these materials are essential for green technology and defense. China’s dominance in this sector poses significant risks for global supply chains.

Related: Ruth Greenspan Bell: Wealth and the climate dilemma