China's Minmetals has finally succeeded in a bid to acquire most of the assets from Australian miner OZ Minerals, after being turned down in March for a full takeover. Minmetals says it will take delivery of assets within a week and set up a new Australian company to keep an eye on operations.
Minmetals sweetened its offer from 1.2 billion US dollars to 1.39 billion. And that did the trick, finally winning approval from shareholders at OZ Minerals. The deal includes mining operations in five areas that produce zinc, copper, lead and silver. But OZ Minerals will retain its Prominent Hill gold and copper mine, which Minmetals was barred from purchasing because it lies within a military area.
Minmetals will register and establish a wholly-owned subsidiary in Australia, called Minerals and Mining Group, to manage these newly-acquired assets.
Zhou Zhongshu, president of China Minmetals Non-ferrous Metals Co., said, "65 percent of China's metal demand will rely on imports by 2020. Our takeover of OZ will play an active role in ensuring the development of domestic economy. "
Minmetals is China's largest metal producer, and OZ Minerals is Australia's third largest miner and the world's second largest zinc producer. OZ Minerals owns over 18 million tons of zinc, equivalent to almost 19 percent of China's zinc reserves.
Minmetals President has called this a win-win deal. He says it is a landmark for Minmetals, helping it develop business in Australia, while also contributing to local economic development, employment and tax revenues.
(CCTV June 12, 2009)
