OZ Minerals 'needs' China cash
23-02-2009
Debt-laden Australian miner OZ Minerals has said it would go into receivership if a A$2.6 billion takeover offer from the mainland's Minmetals does not proceed. While some Australian politicans have expressed unease at Chinese investment in the country's resources sector, OZ Minerals chief executive Andrew Michelmore said last week's offer had saved his company. The proposed deal came days after China's state-owned aluminium firm Chinalco said it was putting over US$19 billion into another trouble Australian mining giant, Rio Tinto. Senators from across the Australian political spectrum have raised concern about Beijing's state-owned entities buying into the hugely important resources sector. However, Mr Michelmore said he was comfortable with Chinese money and believed Minmetals would follow corporate guidelines. Before the Minmetals offer, OZ Minerals flagged asset write-downs of up to A$2.8 billion due to steep commodity price falls sparked by the global financial crisis.
