Australia Sues China-Linked Rare Earths Investors

Australia is suing a Chinese-linked company and a former associate over alleged breaches of foreign investment laws tied to rare earths miner Northern Minerals, in what officials say is the first case of its kind.

Indian Ocean International Shipping and Service Co. was one of five foreign investors with ties to China ordered by Chalmers in June last year to divest their shares in Northern Minerals on national interest grounds. I Photo: Indian Ocean Shipping Facebook

Treasurer Jim Chalmers recently announced the legal action, Christine Chenn reported for Reuters.

Indian Ocean International Shipping and Service Co. was one of five foreign investors with ties to China ordered by Chalmers in June last year to divest their shares in Northern Minerals on national interest grounds.

In a statement, Chalmers said he had lodged a case with the Federal Court seeking penalties, declarations, and costs.

“Foreign investors in Australia are required to follow Australian law,” Chalmers said. “We are doing what is necessary to protect the national interest and the integrity of our foreign investment framework.”

The statement did not disclose the company’s current shareholding or identify the former associate named in the suit. It emphasized that this was the first time a Treasurer had initiated legal action in Federal Court over an alleged breach of foreign investment law.