china ticks oz minerals assets purchase

China ticks OZ Minerals assets purchase
June 3, 2009 - 11:24AM
Australian shareholders are now the only barrier to Oz Minerals' sale of most of its assets for $US1.2 billion ($A1.46 billion) to a Chinese state-owned company.

All Chinese government approvals required to meet the transaction have now been received, leaving the final decision to Australia shareholders next week, Oz Minerals said in a statement on Wednesday.

China Minmetals Non-Ferrous Metals Company Ltd's (Minmetals) bid to buy most of OZ Minerals assets was approved by Australian Treasurer Wayne Swan in April.

China's National Development and Reform Commission signed-off on the proposal on May 18, and other agencies in China have now also given it the green light, OZ Minerals chairman Barry Cusack said in a statement.

"With all other conditions precedent now met, we now look forward to putting this vote to shareholders at our AGM (annual general meeting next week," Mr Cusack said in a statement.

Mr Swan originally blocked the asset sale on national interest grounds, because the Prominent Hill copper and gold mine, near a weapons-testing range in South Australia, was part of the deal.

The company retained Prominent Hill under the revised agreement that has been given government approvals.

OZ Minerals needs the funds from the asset sales to dig itself out of its debt of about $1 billion, due to be repaid by June 30.

"The Minmetals offer provides a complete solution to our refinancing issues," Mr Cusack said.

"It is timely and allows OZ Minerals to repay all of its debt.

"It also sees the company retain the Prominent Hill operation and exploration projects and following the transaction will have approximately $US500 million ($A609.09 million) cash with which to continue to develop Prominent Hill and pursue other activities."

Meanwhile, OZ Minerals' planned sale of its Martabe gold mine in Indonesia has also drawn closer to completion.

OZ Minerals said it had received consent from all of its requisite lenders for the $US211 million ($A257.03 million) sale of the project to China-SciTech Holdings Ltd.

China-SciTech shareholders' approval is the only hurdle left to that deal proceeding, an OZ Minerals spokeswoman said.

Oz Minerals will hold its annual general meeting in Melbourne on June 11.

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