Sydney, October 19th (Argus) - Australian rare earth developer Northern Minerals may be forced to further postpone its final investment decision (FID) and development schedule for the Browns Range heavy rare earth project due to ongoing issues related to foreign investment, which has led to the postponement of the company's annual general meeting (AGM).
Northern Minerals stated on October 19th that due to some shareholders associated with China still failing to comply with the mandatory divestment order issued by the Australian government in May this year, the company has once again postponed the annual general meeting originally scheduled for 2025 and 2026.
The May order was the second divestment directive issued by Australian Finance Minister Jim Chalmers against foreign investors. In 2024, Chalmers required five investors associated with China to sell a total of 610 million shares of Northern Minerals on the grounds of national security.
The latest postponement is expected to slow down the development progress of the Browns Range project. The company stated in April this year that the project was planned to start construction in the period from the end of 2028 to the beginning of 2029. Currently, the company plans to hold the annual general meeting by March 31, 2027 at the latest.
Northern Minerals stated that it will not hold the annual general meeting until the relevant Chinese background shareholders complete the required equity disposal as requested by the government. According to the government's requirements, the divestment was originally supposed to be completed by July 2nd.
Northern Minerals holds 100% of the Browns Range project in Western Australia. The project will produce terbium and dysprosium, two heavy rare earth elements that are widely used in new energy vehicles, wind power generation, energy transition, and permanent magnets required in defense fields.
Northern Minerals also established a strategic partnership with Australia's Iluka Resources. According to the agreement, Northern Minerals will supply 30,500 tons per year of rare earth oxide concentrate to Iluka's Eneabba Refinery during the mining operation period.
