SYDNEY, March 27 (Reuters) - Australia rejected Chinese metals group Minmetals' $1.7 billion bid for Australian miner OZ
Minerals Ltd on Friday, saying it would only approve the deal if it excluded the Prominent Hill copper-gold mine.
Treasurer Wayne Swan noted in a statement that the Prominent Hill operation was situated close to a weapons-testing range in outback south Australia which was a sensitive defence facility.
The government was willing to consider alternative proposals relating to OZ Minerals' other assets and businesses, he said.
(Reporting by Mark Bendeich; Editing by Jim Regan)
