Australia approves China's application to buy OZ Mineral

Australian Treasurer Wayne Swan announced on Thursday the approval of a revised application by China Minmetals Corporation to acquire certain mining assets of Australia's OZ Minerals.

Minmetals' revised proposal is for Golden Grove, Century, Rosebery, Avebury and Dugald River mining operations in Australia, Swan said in a statement, adding that the approval does not include the Prominent Hill mine.

Swan said these undertakings have been designed to protect around 2,000 Australian jobs and ensure consistency with Australia's national interest principles.

These produce zinc, copper, lead, and silver, which are priced with reference to the London Metal Exchange. Currently, some 80 percent of total production from these mines is subject to life of mine contracts, Swan said.

The decision is conditional on legally enforceable undertakings, Swan said.

The conditions include that Minmetals operate the acquired mines as a separate business with commercial objectives and using companies incorporated, headquartered and managed in Australia under a predominantly Australian management team.

Last month, Swan rejected on national security grounds an earlier takeover proposal by Minmetals, because it has included the Prominent Hill mine, which is located within Australia's sensitive weapon test area in Woomera in South Australia.

China Minmetals Corporation is a Chinese metals and mineral trading company.

Source: Xinhua