swan blocks chinese takeover of oz mine, page-138

This latest news update raises the possibility of a spin off company holding PH. I hope so - would be a great outcome.

OZ Minerals facing collapse without takeover deal

Debt-laden mining company OZ Minerals is holding talks this weekend to try and strike a new takeover deal with China's state-owned Minmetals.

The Federal Government has rejected the initial takeover bid on national security grounds because it included a mine on defence land in South Australia.

OZ Minerals says any new deal will exclude the Prominent Hill copper and gold mine in the SA's far north.

The mine may be sold to a new buyer or run by a spin-off company.

The mining company says it faces collapse if a new deal cannot be struck before Tuesday, when it is due to pay back a $1.3 billion debt.

Meanwhile, The Queensland Resources Council says people should not be worried about Chinese investment.

Spokesman Michael Roche says there is too much paranoia surrounding the issue.

"The resources sector in Queensland and Australia-wide has relied on heavy foreign investment over many decades starting with the Japanese, the Koreans, more recently the Indians and Chinese," he said.

"This is just a natural evolution as our trading partners change as well."