Northern Minerals Limited (ASX: NTU), a leading Australian company focused on heavy rare earths, has acknowledged a media release dated 26 June 2025 from the Hon Dr Jim Chalmers MP, Treasurer, regarding legal action initiated in the Federal Court of Australia.
The proceedings target Indian Ocean International Shipping and Service Company Ltd (Indian Ocean) and its former associate for alleged non-compliance with Australia’s foreign investment laws.
The Treasurer’s action stems from the Foreign Acquisitions and Takeovers (Disposal of Interests in Northern Minerals Limited) Orders 2024, published on the Federal Register of Legislation on 3 June 2024.
These orders required five foreign investors, including Indian Ocean, to sell their shares in Northern Minerals Limited to parties who were not their associates by the deadline of 2 September 2024 — a deadline that has since passed, prompting legal action over alleged non-compliance.
Northern Minerals clarified its position, stating it is not a party to these proceedings and considers the matter strictly between the Treasurer and Indian Ocean.
The company assured stakeholders that it will provide further updates as information becomes available.
Treasurer Dr Jim Chalmers MP explained that the government has initiated Federal Court proceedings against Indian Ocean International Shipping and Service Company Ltd and its former associate for allegedly failing to comply with Australia’s foreign investment laws.
Chalmers stressed that all foreign investors must adhere to Australian regulations, and said the government is acting to safeguard the national interest and uphold the integrity of the foreign investment system.
He noted that on 2 June 2024, he issued Disposal Orders requiring five foreign investors, including Indian Ocean, to sell their shares in Northern Minerals Limited to non-associated parties by 2 September 2024.
According to Chalmers, these orders were made to address national security concerns related to Indian Ocean’s stake in Northern Minerals, a key player in Australia’s critical minerals sector.
Chalmers highlighted that this is the first time a Treasurer has brought such a case before the Federal Court for an alleged breach of foreign investment laws.
He also referenced reforms announced in May 2024 aimed at strengthening and streamlining the foreign investment framework to ensure it serves Australia’s national interest.
Chalmers added that the proceedings seek penalties, declarations, and costs, and that court filings will be made available in due course.
Northern Minerals emphasised its non-involvement in the legal proceedings and reiterated its commitment to keeping the market informed.
The company’s role as a key player in Australia’s critical minerals sector underscores the broader national security and policy context of the Treasurer’s actions.
The Federal Court will process the filings, and further details are expected to be released in due course.
The case marks a precedent as the first instance of a Treasurer initiating Federal Court action for an alleged breach of Australia’s foreign investment laws.
