Minmetals' $1.2 billion deal with OZ Minerals gets NDRC nod

19 May 2009

China's key economic planning agency, the National Development and Reform Commission (NDRC) has approved China Minmetals' $1.2 billion takeover bid for the mines of Australia's OZ Minerals, the world's second-largest producer of Zinc. OZ Minerals informed in a statement filed on Monday with the Australian Stock Exchange.

Melbourne-based OZ Minerals' chairman Barry Cusak said: "While several further Chinese regulatory approvals are required, we are aware of the significance of the NDRC approval that Minmetals has advised us of today."

The deal needs further Chinese regulatory approvals from the Ministry of Commerce and the State Administration for Foreign Exchange and also the Assets Supervision and Administration Commission, which are expected to be obtained before the shareholders meeting on June 11.

''This sale represents the best available outcome for OZ Minerals and provides a complete solution to its refinancing issues," Cusak said and he further requested the shareholders to vote in favour of the resolution authorizing the sale.

Further to the shareholders approval, OZ Minerals wants to complete and settle the sale proceeds by June 18.

Minmetals also assured OZ Minerals that it has tied up for the finances for completion of the deal, the statement said.