swan blocks chinese takeover of oz mine

Swan blocks Chinese takeover of OZ mine
http://www.businessday.com.au/business/swan-blocks-chinese-takeover-of-oz-mine-20090327-9d1x.html
Swan blocks Chinese takeover of OZ mineJamie Freed
March 27, 2009 - 4:46PM
The Federal Treasurer, Wayne Swan, has prohibited China Minmetals from buying the Prominent Hill copper and gold mine from OZ Minerals, in a move that is likely to scupper the Chinese company's $2.6 billion bid for the company.

Prominent Hill is OZ's most valuable asset, and Mr Swan's ruling that its location in the Woomera Prohibited Area weapons testing range in South Australia means it is too sensitive to be owned by a Chinese state-owned company is likely to leave the OZ board searching for alternative options to avoid administration.

OZ needs to repay or extend the deadline on $1.3 billion of debt due on Tuesday to avoid administration. Now, its options would appear to be rather limited, short of a last-minute offer from Barrick Gold, BHP Billiton or another mining company.

Discussions between the Foreign Investment Review Board and Minmetals are continuing over OZ's other businesses and assets, Mr Swan said.


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