By Scott Murdoch
SYDNEY (Reuters) – An Australian government order to several China-linked investors to dispose of shares in Northern Minerals was not connected with the rare earths miner’s revelation this week of a data leak by cyberhackers, its chairman said on Thursday.
Northern Minerals said on Tuesday some of its corporate, operational and financial data had been released on the dark web following a cyberattack in March.
The announcement came one day after Australian Treasurer Jim Chalmers ordered several China-linked investors to dispose of Northern Mineral shares on national interest grounds.
Executive Chairman Adam Handley told the company’s shareholder meeting in Perth on Thursday the attack and the divestiture order were not linked.
“As is typical with cyber security attacks on corporations like Northern Minerals, the hackers demanded a ransom from us. Northern Minerals, out of principle, refused to engage with the hackers on a ransom,” he said.
“The fact we disclosed the cyber security breach a day after the Treasurer’s divestiture order was announced is a coincidence. There are no suggestions, contrary to some media speculation, that the two events are linked in any way.”
Chalmers said Yuxiao Fund and other investors linked to it had 60 days to dispose of 80 million Northern Minerals shares they bought in September.
The number of shares that must be divested amounts to around 10.4% of Northern Minerals’ issued share capital.
Northern Minerals has said the ultimate controller of Yuxiao Fund is Chinese national Wu Tao, whose nomination to join the board failed, the company announced at its annual meeting on Thursday.
The nomination of two other board candidates who were proposed by entities and individuals named in the Treasurer’s divestment order on Monday also failed at the meeting.
(Reporting by Scott Murdoch and Kirsty Needham; Editing by Sonali Paul and Christopher Cushing)
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