Concerns have resurfaced over Australia's capacity to protect its critical minerals sector from foreign influence, following recent boardroom disputes involving China’s Inner Mongolia Xingye Group and two Australian exploration companies listed on the ASX.

Xingye, a Chinese silver and tin miner valued at approximately A$12 billion on the Shenzhen Stock Exchange, has engaged in contested efforts to gain control of Far East Gold and Tartana Minerals. Both companies hold interests in projects deemed significant for critical minerals, with Far East Gold owning a 51 percent stake in the Idenburg gold project in Indonesia’s Papua Province, and Tartana Minerals controlling copper and base metals tenements in northern Queensland.

The pattern of Xingye’s involvement echoes earlier attempts by China-linked investors to influence Northern Minerals, another rare earths explorer. In that case, despite interventions by Treasurer Jim Chalmers and government orders restricting stake increases by the Chinese-owned Yuxiao Fund, attempts were made to destabilize the company’s board. However, a key distinction exists with Far East Gold: the Foreign Investment Review Board (FIRB) authorized Xingye to pursue a takeover, permitting it to acquire up to 20 percent of the company and appoint a board nominee.

Initially welcomed as a financial and technical partner when it joined Far East Gold’s register in 2024, Xingye’s stance shifted as it launched a takeover bid at 13 cents per share earlier this year. This offer was opposed by four Far East Gold directors, who argued it significantly undervalued the company. An independent expert report supported their view, valuing shares at over 32 cents. After the bid closed in August, Xingye had secured only an additional 17 percent stake. In response, Xingye initiated a board spill motion targeting directors who had opposed the takeover.

Parallel tensions have unfolded at Tartana Minerals, where a failed capital raise in February eroded shareholder confidence and weakened the board. Xingye emerged as a potential investor with an unsolicited proposal to acquire a 20 percent stake at 5.3 cents per share, a premium over market price. The offer included conditions such as appointing geologists to supervise exploration activities and veto power over asset sales, prompting division among Tartana’s board members. The resignation of chair Alistair Lewis in July preceded the shareholder vote in August, which saw the removal of two directors opposed to Xingye’s terms. Xingye also conditioned its proposed funding on the outcome of this vote.

Though Far East Gold and Tartana Minerals are relatively small companies, valued at A$44 million and A$5.2 million respectively, their holdings in Australian critical minerals projects have raised scrutiny from experts and policymakers. Ian Satchwell, a senior fellow at the Australian Strategic Policy Institute, emphasized the need for vigilance. He noted that while no laws may have been violated, attempts to influence control of strategic mineral assets resemble foreign interference tactics previously flagged by the Australian government.

The recent developments have intensified calls for rigorous monitoring of foreign investment in critical minerals projects to safeguard national interests, highlighting ongoing challenges for regulatory bodies like FIRB in balancing investment openness with strategic security.