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Friday, 27th March 2009 (1074 views)

A proposal to take over Australian mining company Oz Minerals has been blocked by the country's government.

China Minmetals Non-Ferrous Metals Company Limited had been planning a 100 per cent acquisition of the firm, but the Treasurer of Australia determined that it could not go ahead on national security grounds.

Among Oz Minerals' assets is the Prominent Hill mine, located near the Woomera Prohibited Area - a weapons testing range.

The Treasurer noted that any takeover would not be approved if it included this, but noted that an alternative arrangement would be given consideration.

Commenting on the decision, managing director and chief executive of Oz Minerals Andrew Michelmore revealed that discussions are now taking place with Minmetals "regarding possible changes to the proposed transaction structure".

Last month the Oz Minerals board of directors unanimously recommended that shareholders accept an offer of 82.5 cents (40p) per share for all outstanding stock.

 

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