Skip to main content

Oz Minerals, Minmetals eye $1.2B deal

  • Story Highlights
  • Treasurer Swan rejected Minmetals proposal for 100 percent takeover last week
  • He cited national interest because of Prominent Hill's location in key site
  • New deal would have Prominent Hill mine in Oz Minerals' hands
  • New deal gives Oz Minerals cash balance of A$600 million (US $417 million)
  • Next Article in World Business »
Decrease font Decrease font
Enlarge font Enlarge font

(CNN) -- Australian mining company Oz Minerals said it has reached a US $1.2 billion deal with China-based Minmetals that could overcome the Australian government's rejection last week.

Under the new proposal, to be approved by Oz Minerals' shareholders, the company will retain the Prominent Hill copper-gold mine in South Australia as well as assets in Cambodia and Thailand.

Last week, Australian Treasurer Wayne Swan rejected a A$2.6 billion (US $1.8 billion) proposal by Minmetals to take over 100 percent of Oz Minerals, citing national interest because of Prominent Hill's location in the Woomera Prohibited Area weapons testing range.

He said no deal could get approval, if it included the sale of Prominent Hill.

The new deal would immediately give Oz Minerals a cash balance of A$600 million (US $417 million), according to a release to the Australian Securities Exchange (ASX).

The completion of the deal is set for June.

  • E-mail
  • Save
  • Print