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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (34760)	3/27/2009 12:00:03 PM
From: LoneClone	Read Replies (1) \| Respond to of 194034

Australia blocks China Minmetals' bid for OZ Minerals Singapore (Platts)--27Mar2009 platts.com Australia has blocked China Minmetals' A$2.6 billion ($1.8 billion) takeover bid for OZ Minerals, due to the Australian miner's Prominent Hill gold-copper mine's proximity to a weapons testing site. In a statement released by OZ Minerals Friday, which included comments from the country's Treasurer Wayne Swan, the Australian government expressed concern about the location of the Prominent Hill operations in South Australia, which are located in the "Woomera Prohibited Area." "The Woomera Prohibited Area weapons testing range makes a unique and sensitive contribution to Australia's national defence," Swan said. "The government has determined that Minmetals' proposal for OZ Minerals cannot be approved if it includes Prominent Hill." Swan added that it was not unusual for governments to restrict access to sensitive areas on grounds of national security. Swan said Minmetals has been informed of his decision, and said the Australian government will be willing to consider alternative proposals relating to other businesses and assets of OZ Minerals. In response to Swan's decision, OZ Minerals said it will negotiate with Minmetals on possible changes to the deal. "OZ Minerals is now in discussions with Minmetals regarding possible changes to the proposed transaction structure in light of the Treasurer's statement and will make a further announcement in this regard as soon as possible," OZ Minerals Managing Director and CEO Andrew Michelmore said. In the meantime, OZ said it will continue negotiations with its lenders to extend the deadline on loan facilities, which are due end March. --Li Anne Wong, newsdesk@platts.com