Denied Chinese rare earth bid ‘helps mitigate risk’

Treasurer Jim Chalmers blocked Yuxiao Fund's bid to increase its stake in Northern Minerals. Photo: AAP

A security expert says the blocking of a Chinese-backed company from increasing its share in a producer of heavy rare earth minerals will help mitigate the risk of Chinese coercion.

Treasurer Jim Chalmers has blocked Yuxiao Fund from increasing its ownership in Northern Minerals from 9.9 per cent to 19.9 per cent.