Australia blocks Chinese investment in rare earths producer on national interest grounds

[Hamartia Antidote]

Australia blocks Chinese investment in rare earths firm citing national interest

The Singapore-registered Yuxiao Fund, an investment vehicle of Chinese national Yuxiao Wu, was blocked from raising its ownership of Northern Minerals Ltd, its executive chairman said.

www.scmp.com

• The Singapore-registered Yuxiao Fund, an investment vehicle of Chinese national Yuxiao Wu, was blocked from raising its ownership of Northern Minerals
• Australian PM Anthony Albanese said earlier that he favours using rare earths and other critical minerals to make batteries in Australia

An Australian rare earths mine. Northern Minerals Ltd said the Yuxiao Fund invested in the rare earths producer for financial reasons, not to supply China. Photo: Lynas Corporation via AFP

Northern Minerals Ltd 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 the grounds of national interest.

Yuxiao Fund sought Foreign Investment Review Board approval in August to raise its ownership to 19.9 per cent from 9.92 per cent. A government register showed Treasurer Jim Chalmers signed a prevention order on February 15.

The Singapore-registered fund is an investment vehicle of Chinese national Yuxiao Wu, who also owns miners in Mozambique supplying lower-grade rare earths to China, said Northern Minerals Executive Chairman Nick Curtis.
“There is a special category of assets for any government to protect its national interest,” Curtis said.

The Yuxiao Fund could not be reached for comment. The Australian Treasurer’s office, which would be responsible for blocking such an investment based on the advice of the review board, declined to comment.

China has criticised Australia for previously blocking Chinese investment on national security grounds, saying this contributed to a years-long diplomatic freeze.
Relations between the two countries are improving after years of strained ties, although Chinese “trade blockages” on Australian exports remain in place.

In November, Chalmers said Australia, which is the world’s top lithium supplier and a major producer of rare earths, would become more selective about who it lets invest in its critical minerals industry

Northern Minerals said it planned to become the first significant world producer of dysprosium outside China, which controls 94 per cent of supply. Dysprosium is a key component for magnets for electric vehicles.

“Our material is needed for the magnet supply chain,” said Curtis, adding this was the likely reason the increased investment by a Chinese investor was blocked.
Northern Minerals second-largest shareholder is also Chinese, although Chinese citizens or high-net-worth Australian citizens of Chinese background hold less than 30 per cent of shares, he said.

The vice-president of the Australia China Business Council, Adam Handley, became a director in December

 

[dbc]

strange isn't it, in 2020 China banned Aussie coal. They quietly reversed that decision but now that the Aussies have found alternate lucrative markets the Chinese have lost preferential pricing and are unable to entice Aussie producers to reengage.

 

[renhai]

strange isn't it, in 2020 China banned Aussie coal. They quietly reversed that decision but now that the Aussies have found alternate lucrative markets the Chinese have lost preferential pricing and are unable to entice Aussie producers to reengage.

strange isn't it? China has never lifted the trade ban on Nazi Australia. But Nazi Australia had to buy Chinese cars, TBM and other products.

It seems that Nazi Australia once again misunderstood its position. Like I said....The son chooses the way of the game, and the father decides the result of the game.

 

[huanghong]

strange isn't it, in 2020 China banned Aussie coal. They quietly reversed that decision but now that the Aussies have found alternate lucrative markets the Chinese have lost preferential pricing and are unable to entice Aussie producers to reengage.

Australian coal exports
2019 396 million tons
2020 371 million tons
2021 366 million tons
2022 347 million tons

 

[dbc]

Australian coal exports
2019 396 million tons
2020 371 million tons
2021 366 million tons
2022 347 million tons

so essentially China's ban had negligible impact on Australian exports.

“However, the group’s current production remains fully contracted to existing domestic and international customers, with the majority of revenue generated from sales to our long-term customers in Japan and Taiwan.” Three other NSW thermal coal miners that have privately confirmed receiving Chinese inquiries also advised that they, too, lack sufficient spare capacity to enter into new supply deals immediately.

Chinese firms restart coal supply talks with Australian miners

Expectations are building across the sector that a complete lifting of the trade ban is possible within weeks.

www.smh.com.au

 

[huanghong]

so essentially China's ban had negligible impact on Australian exports.

“However, the group’s current production remains fully contracted to existing domestic and international customers, with the majority of revenue generated from sales to our long-term customers in Japan and Taiwan.” Three other NSW thermal coal miners that have privately confirmed receiving Chinese inquiries also advised that they, too, lack sufficient spare capacity to enter into new supply deals immediately.

Chinese firms restart coal supply talks with Australian miners

Expectations are building across the sector that a complete lifting of the trade ban is possible within weeks.

www.smh.com.au

Yes, no spare capacity after exporting 50 million tonnes less than in 2019

 

[dbc]

Yes, no spare capacity after exporting 50 million tonnes less than in 2019

coal prices spiked in 2021 and 2022. Aussie coal revenue increased by 186%.from its 2019 baseline. So the Aussies didn't miss China at all.

Coal Export Revenue up 186% to $112 Billion as Parliament Considers Price Caps

New research reveals Australian coal export revenue reached $112 billion in 2021-22, an increase on the previous year of $73b or 186%, as Federal

australiainstitute.org.au

 

[huanghong]

coal prices spiked in 2021 and 2022. Aussie coal revenue increased by 186%.from its 2019 baseline. So the Aussies didn't miss China at all.

Coal Export Revenue up 186% to $112 Billion as Parliament Considers Price Caps

New research reveals Australian coal export revenue reached $112 billion in 2021-22, an increase on the previous year of $73b or 186%, as Federal

australiainstitute.org.au

Prices are subject to change. When the price is high, it can cover up the decrease in export volume, and when it falls, it will expose it. Just like iron ore once exceeded $200 a ton, and then fell to $100 within half a year.

 

[dbc]

Prices are subject to change. When the price is high, it can cover up the decrease in export volume, and when it falls, it will expose it. Just like iron ore once exceeded $200 a ton, and then fell to $100 within half a year.

well regardless the Aussies have now signed long term contracts with reliable buyers. China is now a fringe inconsequential party to the Aussies due to its own arrogance.

Its funny many Chinese members predicted Australia would collapse under the might of Chinese ban.

 

[huanghong]

well regardless the Aussies have now signed long term contracts with reliable buyers. China is now a fringe inconsequential party to the Aussies due to its own arrogance.

Its funny many Chinese members predicted Australia would collapse under the might of Chinese ban.

Australia is not the focus of China's coal imports. No one expects that the ban on coal imports will have much effect. This is a political attitude.
Since 2019, China's import volume has been around 300 million tons per year, and it does not matter much whether it imports from Australia.

 

[dbc]

Australia is not the focus of China's coal imports. No one expects that the ban on coal imports will have much effect. This is a political attitude.
Since 2019, China's import volume has been around 300 million tons per year, and it does not matter much whether it imports from Australia.

not according to your pdf comrades they were predicting the demise of Australia.

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