N CurtisRare earths boss targeted by Chinese-linked...

N Curtis
Rare earths boss targeted by Chinese-linked shareholderBrad ThompsonReporterNov 21, 2023 – 12.59pmNorthern Minerals executive chairman Nick Curtis is being targeted by Chinese interests accused of a covert attempt to gain control of the strategically important rare earths player.The Yuxiao Fund wants Mr Curtis removed from the board and permission to inspect Northern Minerals’ books so it can “review the legality and compliance of Nicholas Curtis’ conduct in the performance of his duties as a director and an officer”.Yuxiao Fund has requisitioned Northern Minerals to call a general meeting to consider resolutions that would dump Mr Curtis from the board with immediate effect and open up the company’s books.The Yuxiao Fund wants to oust Mr Curtis after Northern Minerals asked the Foreign Investment Review Board to probe whether a series of share acquisitions were being orchestrated by Chinese interests as a way around a federal government ban imposed earlier this year.Treasurer Jim Chalmers blocked Singapore-registered Yuxiao Fund increasing its stake in Northern Minerals to 19.9 per cent from 9.81 per cent almost nine months ago.Iluka Resources, which is building Australia’s first fully integrated rare earths refinery with $1.25 billion federal government funding, is helping to finance the development of Northern Minerals’ heavy rare earths Browns Range project in Western Australia.Yuxiao Fund is controlled by Chinese businessman Wu Tao, whose company, Africa Great Wall, is a big player in mineral sands mining in Mozambique and a supplier of ilmenite into China.Iluka’s core business is minerals sands and Africa Great Wall is a rival in ilmenite supply.Yuxaio Fund recently nominated Mr Wu for a seat on the Northern Minerals board with the nomination seconded by Sun Bo, who owns less than 1 per cent of the stock.Probing share-buying activityThe request for a board seat and concerns about the share trading prompted Northern Minerals to delay its scheduled annual general meeting by three months to allow time for an inquiry.The Northern Minerals board said last month that it understands Mr Wu is “effectively the ultimate controller of Yuxiao Fund”.“The prohibition order [issued by Mr Chalmers] 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.“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 date of this announcement, the company has not received any confirmation from Mr Wu that Yuxiao Fund intends to seek such approval.”Northern Minerals said it had been probing “recent share buying activities by certain other persons who may have links to Mr Wu and/or Yuxiao Fund”.West Perth-headquartered Northern Minerals is also examining two other candidates nominated for board seats “to understand whether there are links between these individuals and other shareholders in the company”.The deal with Northern Minerals is set to give Iluka access to feedstock from a deposit rich in heavy rare earths materials dysprosium and terbium as Australia, the United States and other Western nations look to break China’s stranglehold on supply amid fears that Beijing could cripple technology companies and key military suppliers.Mr Curtis is a founder of Lynas Rare Earths, the world’s biggest non-China supplier of rare earths.However, Lynas is not yet a force in the supply of the dysprosium and terbium and needs to secure a source of heavy rare earths feedstock to meet part of its obligations to the US Department of Defence, which is helping fund a Lynas refinery in Texas.Northern Minerals said on Tuesday that it was considering the Yuxiao Fund request for a general meeting and the associated resolutions to see if it was valid and would comply with its legal obligations.Australia has recognised the Northern Minerals’ Browns Range heavy rare deposit as strategically important since at least 2019 when then defence minister Linda Reynolds welcomed a move by the company to tear up an off-take agreement with China’s Lianyugang Zeyu New Materials Sales Company, or JFMAG.Brad Thompson writes across business and politics from Western Australia f