Colin Jacoby -- MINING NEWS -- Friday, 27 March 2009
THE federal government today said it would reject China Minmetals’ $A2.6 billion takeover offer for embattled OZ Minerals if the Prominent Hill copper-gold mine was included in the deal.
Federal Treasurer Wayne Swan said in a statement that the Prominent Hill mining operations were situated in South Australia’s Woomera Prohibited Area weapons testing range which “makes a unique and sensitive contribution to Australia’s national defence”.
“It is not unusual for governments to restrict access to sensitive areas on national security grounds,” he said.
“The government had determined that Minmetals’ proposal for OZ Minerals cannot be approved if it includes Prominent Hill.
“I have informed Minmetals of this decision.”
Swan added that discussions between the Foreign Investment Review Board and Minmetals are continuing over OZ’s other assets.
“The government is willing to consider alternative proposals relating to those other assets and businesses,” he said.
Commenting on the statement, OZ managing director and chief executive officer Andrew Michelmore said the company was now in talks with Minmetals over possible changes to the structure of the deal.
"[OZ] will make a further announcement in this regard as soon as possible," Michelmore said.
OZ added that the company "remains in constructive negotiations with its banks regarding the pending extension of certain loan facilities due on March 31."
OZ entered into a trading halt today over the "company's position in relation to the share offer by China Minmetals" ahead of its March 31 deadline to refinance debt.
MiningNews.net was unable to get comment from OZ prior to publication.
The trading halt is due to be lifted on Tuesday.
OZL Price at posting:
$5.55 Sentiment: None Disclosure: Not Held
