China's Minmetals was still in discussions with Australia's foreign investment regulators about buying debt-laden Oz Minerals, a spokesman said Monday, after a crucial part of the deal was vetoed by the government.
Treasurer Wayne Swan delivered a blow to China Minmetals Nonferrous Metals Co.'s proposed 2.6 billion Australian dollars ($1.7 billion) acquisition of the world's second-largest zinc producer when he said the state-owned company would not be allowed to buy Oz Minerals' Prominent Hill mine in the Woomera Prohibited Area, a military weapons testing range.
Fairfax Media newspapers reported Monday that Minmetals handed Oz Minerals a revised plan to buy most of the company but not the Prominent Hill gold and copper mine.
Oz Minerals, which sought the original Minmetals deal as a financial lifeline, did not respond to requests for comment Monday.
Minmetals spokesman in Australia, Ian Smith, also declined to comment on a revised plan but said Monday the company had been talking to the Foreign Investment Review Board and "that remains the case."
"Any offer put forward would be subject to FIRB considerations," Smith said.
Oz Minerals is Australia's third-largest mining company and the world's second-largest producer of zinc. It also produces copper, gold, lead and silver.
Source: Forbes/Associated Press
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