On 26 June 2025, the Federal Treasurer commenced action in the Federal Court of Australia against Indian Ocean International Shipping and Service Company Ltd (Indian Ocean) and its former associate for not complying with Australia’s foreign investment law. Indian Ocean and its associate are both foreign investors with links to China, including entities associated with the Chinese-controlled Yuxiao Fund.
This is the first case to be brought by a Treasurer before the Federal Court for an alleged breach of the foreign investment laws.
The proceedings relate to Disposal Orders issued by the Treasurer on 2 June 2024 directing five foreign investors, including Indian Ocean, to dispose of shares in ASX listed Northern Minerals Limited (Northern Minerals) to persons who were not their associates, by 2 September 2024. Those orders were reportedly not complied with.
The Disposal Order was issued to Indian Ocean to address the risk to national security posed by its acquisitions of shares in Northern Minerals. Northern Minerals is developing the Browns Range heavy rare earths project in Western Australia which is of strategic significance to Australia, as it is one of the few non-Chinese sources of certain important critical minerals.