Victoria
Federal government considers nationalising Perth critical minerals developer
Resources Minister Madeleine King has left the door open to nationalising a Perth critical minerals firm after foreign investors defied divestment orders.
The federal government has refused to rule out the nationalisation of a Perth-based critical minerals company after several foreign investors with links to China defied official orders to sell their shares.
According to reporting by wire services, Resources Minister Madeleine King has left the door open to government intervention, including nationalisation, to resolve the stand-off. The situation arises from a federal directive ordering the China-linked shareholders to divest their holdings in the Western Australian rare earths explorer.
The names of the specific investors and the exact scale of their holdings in the Perth company have not been publicly detailed, nor has the government specified a deadline for the forced divestment. However, the defiance of the Commonwealth order represents a significant challenge to Australia's foreign investment screening laws, which have tightened around critical minerals and rare earths projects in recent years.
Nationalisation, which would involve the federal government taking direct ownership or control of the private resources firm, remains a rare and extreme measure in Australian economic policy. Minister King's refusal to rule out such an option signals the high level of concern within the federal cabinet regarding foreign influence over domestic critical mineral supply chains.
Critical minerals, including rare earths, are vital components in modern technologies, renewable energy systems, and military equipment. The Australian government, alongside international allies, has been working to secure these supply chains and reduce reliance on Chinese processing and investment.
Further details regarding how the government intends to enforce its divestment orders, or the specific legal mechanisms it might use to intervene in the company, remain unconfirmed.
Observers will be watching to see if the federal government issues a formal ultimatum to the non-compliant investors or initiates legal proceedings to enforce the divestment order.
This report draws on original reporting by Wire report.
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