Australia blocks Chinese investment in rare earth firm citing national interest

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China has said blocking such investments contribute to worsening diplomatic relations with Australia. Read more at straitstimes.com.

SYDNEY - Northern Minerals on Tuesday said Australia’s government has blocked the heavy rare earths producer’s largest shareholder, China’s Yuxiao Fund, from increasing its investment on grounds of national interest.

“There is a special category of assets for any government to protect its national interest,” Mr Curtis said. Relations between the two countries are improving after years of strained ties, although Chinese “trade blockages” on Australian exports remain in place. Mr Wu invested in Northern Minerals for financial reasons, not to supply China, and voted in favour of an exclusive supply deal with Australia’s Iluka Resources last year, Mr Curtis said.

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