Northern Minerals faces another China board battle with major shareholder targeting exec chairman Adam Handley

Chinese interests have mounted a fresh campaign to overthrow Northern Minerals’ leadership and take control of the rare earths player feted by the Australian and US governments. Beijing-headquartered Vastness Investment Group, which is Northern Minerals’ largest shareholder with a 7.7 per cent stake, on Wednesday lobbed a notice to requisition a shareholders meeting to remove executive chairman Adam Handley. Northern Minerals shareholders will vote on Vastness’ resolution at a planned annual general meeting to be held by March 31. The meeting will also consider applications made by other Chinese-linked candidates to seize board seats. One of those candidates, Enping Fu, narrowly missed out on joining the board seat at the last AGM, winning support from 48 per cent of voting shareholders. The intensifying boardroom showdown marks the latest chapter in a long-running saga of what is thought to be a co-ordinated state-backed campaign to covertly seize control of Northern Minerals. In June 2024, Treasurer Jim Chalmers ordered five entities thought to be linked to China to sell 613.6 million shares, or 10.4 per cent of the West Perth-based company, on national interest grounds. He had earlier blocked one associated company from increasing its stake in Northern Minerals to 19.9 per cent. Then, Dr Chalmers in June last year sued one of the five groups targeted by the sell-down order in the Federal Court for defying his edict. Northern Minerals successfully sought court relief to delay its AGM from November 27 to a date before March 31 on the basis that it suspects Dr Chalmer’s orders have still not been complied with. Northern Minerals’ Browns Range, which is set to produce first concentrate in 2028, contains large volumes of the coveted ‘heavy’ subset of rare earth elements. Heavies have higher atomic weights relative to light rare earths and are far less common. Browns Range, located 145km south-east of Halls Creek, will also feed Australia’s first integrated rare earths refinery being developed by Iluka Resources in Eneabba. Northern Minerals is one of a handful of Australian critical mineral companies called out for financial backing under a partnership between the US and Australia struck in October. The US Export Import Bank is set to provide $US2.2 billion of funding — mainly debt — this financial year to help the companies develop their projects. Some $US230m has been set aside for Northern Minerals.