Northern Minerals faces investigation over forced share divestments

• The federal government is checking if six foreign investors complied with orders to sell down their combined 17.58% stake in Northern Minerals.
• The immediate market impact remains unclear, as the company did not confirm if the 1.68 billion shares changed hands before the July 2 deadline passed.
• The divestment orders aim to reduce China-linked influence over the strategically sensitive Browns Range heavy rare earths project in Western Australia.

The Australian Treasury is investigating whether six foreign investors based in China, Hong Kong, and the British Virgin Islands complied with federal orders to sell down 1.68 billion shares in Northern Minerals (ASX:NTU).

The Perth-based company notified the market on July 6 that the July 2 deadline had passed, prompting the business to hand over share registry data to Treasury's foreign investment division.

“Northern Minerals is working hard to advance our 100%-owned Browns Range Heavy Rare Earths Project, which is a globally significant opportunity to underpin a new, secure and reliable allied supply chain,” said Northern Minerals Executive Chair Adam Handley.

Treasury officials are now reviewing the transactions to ensure the divested holdings were transferred to genuinely independent buyers rather than related parties.

Following the announcement, the Northern Minerals share price was unchanged at $0.031.

The federal government has intervened in the company's share register four times in just over three years due to national security concerns regarding foreign ownership of critical minerals.

The Browns Range project contains heavy rare earths used in permanent magnets for defence and clean energy, with the company aiming for a development decision by Sept. 30 ahead of planned production in late 2028 or early 2029.