Australia miner agrees China sale

Oz's Prominent Hill mine is near a weapons testing range

Australian miner Oz Minerals has signed off a takeover offer from China's Minmetals that will solve its debt crisis and secure its future.

The $1.2bn (£810m) deal for the world's second-biggest zinc miner should go through in June, subject to regulatory and shareholder approval.

The Australian government rejected the original $1.7bn offer on security concerns over a copper and gold mine.

Chinese firms have made a number of bids for Australian mines recently.

Minmetal's original bid failed because the Prominent Hill mine was located near a weapons-testing range in the outback.

The new deal excludes the mine entirely.

"Once implemented, this transaction will provide a complete solution to our financing issues and see shareholders retain their Oz Minerals shares and, therefore, exposure to the Prominent Hill operation and its long term growth profile," said Oz Minerals boss Andrew Michelmore.