Minmetals Continues to Advance after Acquiring Majority of OZ Minerals

Submitted by Jim Thesiger on 19 March, 2010 - 14:55

China Minmetals, one of the largest metal traders of China is looking forward to expand its network in Australia and currently continuing open dialogue with the Government after it came up with a $US1.3 billion worth of rescue package for OZ Minerals (OZL), a metal mining and exploration Company that primarily focuses on the production of zinc, copper, lead, gold and silver. Zhou Zhongshu, the president of China Minmetals stated in an interview that, the Australia based subsidiary (Minerals and Metals Group) of his company will work as a vehicle to boost the growth of the company. Mr. Zhou included that his company does have a target regarding how much MMG should grow and the growth pipeline will come through acquisitions and organically.

It is to be mentioned that the OZ Mineral bid of Minmetals ignited debate due to Chinese policy of expanding hold over the rich resources assets of Australia. Earlier, Minmetals’ $2.6 billion worth of OZ bid to takeover the entire company was knocked back by Wayne Swan as it was considered as a matter of national security because of Prominent Hill being close to the Woomera defence site. Later Minmetals revised the bid and came up with a new $U.S1.3 billion proposal to acquire all the assets of OZ Minerals excluding the flagship Prominent Hill mine- something that was the biggest Australian resource acquisition for China during that period.

The Minmetals President stated that, his side sees the Australian Government having very clear objectives for the overseas investments- something that was more than 18 months ago by Mr. Swan. Mr. Zhou also added that the process of the Foreign Investment Review Board was straight forward and was followed by his side. Communications between the Government and Minmetals was always clear and open and continues to be like that, he said.