Treasurer Wayne Swan has approved China Minmetals Non-ferrous Metals application to acquire certain assets of Australia’s Oz Minerals.
Swan approved the deal on Thursday under the condition that Minmetals operate the acquired assets as a separate business with commercial objectives and using companies incorporated, headquartered and managed in Australia under a predominately Australian management team.
Swan said the condition was a ‘legally enforceable undertaking’ that is designed to protect around 2000 Australian jobs and ensure consistency with Australia’s national interest principles.
Minmetals has promised to expand production at some sites as condition of the $1.7 billion purchase, Swan said in a statement announcing the approval.
“The Minmetals deal includes Golden Grove, Century, Rosebery, Avebury and Dugald River mining operations in Australia,” he said.
“These produce zinc, copper, lead and silver which are priced with reference to the London Metal Exchange.
“Currently, some 80% of the total production from these mines is subject to life of mine contracts.”
On March 27, Swan rejected Minmetals original offer to buy out OZ Minerals for $2.6 billion on the grounds of national security.
The deal included Prominent Hill mine which is located within the Woomera Prohibited area.