A Chinese-backed company’s attempt to increase its stake in a strategically vital rare earth producer has been blocked by the federal government.
Yuxiao Fund, a Singapore-registered company, sought to increase its ownership in Northern Minerals from 9.9 percent to 19.9 percent but the move was stopped by Australian Treasurer Jim Chalmers, who signed a prevention order in February.
Northern Minerals owns and operates the Browns Range mine in northern Western Australia, which the company expects to turn into the first significant mine of dysprosium, which is used in the manufacture of control rods in nuclear reactors, magnets, and other industrial applications.
Treasurer Chalmers said that the decision was based on the advice of the Foreign Investment Review Boar….