Rare earths player asks FIRB to probe share buying
Rare earths play Northern Minerals has asked the Foreign Investment Review Board to probe whether recent share acquisitions are part of a covert attempt by Chinese interests to gain control of its strategically important assets in Western Australia.
Northern Minerals revealed its suspicions and the request for a FIRB investigation late on Monday, some seven months after Treasurer Jim Chalmers took action to prevent the Singapore-registered Yuxiao Fund increasing its stake from 9.81 per cent to 19.9 per cent.
Nick Curtis-led Northern Minerals has delayed its scheduled annual general meeting by three months to allow time for an inquiry into recent share transactions and board nominations.
Yuxaio Fund has nominated Chinese businessman Wu Tao for a seat on the board with the nomination seconded by Sun Bo, who owns less than 1 per cent of the stock.
The Northern Minerals board said it understands Mr Wu is “effectively the ultimate controller of Yuxiao Fund”.
“The prohibition order (issued by Mr Chalmers in February) also included a direction to Yuxiao Fund to not increase the proportion of its interests in the Company beyond 9.98 per cent,” Northern Mineral said in a statement to the ASX.
“As the appointment of Mr Wu as a director would place Yuxiao Fund in a position to exert a direct influence on the central management and control of the company, the board considered whether Mr Wu’s appointment as a director would require, or should be subject to, the approval of the treasurer under the Foreign Acquisitions and Takeovers Act 1975 before the appointment takes effect.
“The board concluded that, in the circumstances, it would be appropriate for Yuxiao Fund to apply to FIRB to seek approval for Mr Wu’s appointment. As at the
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