Australia's OZ Minerals Ltd, the world's second biggest zinc miner, has agreed to sell most of its assets to Chinese state-owned metal and mineral company China Minmetals Corp. (Minmetals), just a week after the Australian government rejected Minmetal's AU$2.6 billion ($1.8 billion) bid since one of Oz Minerals' key mines, the Prominent Hill mine, was located near Defence Department land in South Australia.
The renegotiated deal worth AU$1.8 billion ($1.25 billion) is expected to satisfy security concerns raised by the original offer. Minmetals restructured its bid to try to meet the Australian government's requirements.
The new deal excludes the Prominent Hill mine, but includes the Rosebery and Avebury mines in Tasmania.
The deal would help to rescue the miner from its debt crisis and to secure its future. OZ Minerals said its banks agreed to extend the refinancing of AU$1.1 billion ($762 million) of debt until the end of the current month.
The OZ Minerals takeover still requires regulatory and shareholder approval. Once the purchase is approved, it is expected to be completed by June.