Mining company rejects BHP Australia takeover attempt

SYDNEY, Aug. 8 (Xinhua) -- Australian mining company OZ Minerals (OZL) has rejected an attempted buyout from Australian multinational mining giant BHP, which made an acquisition bid of 8.3 billion Australian dollars (about 5.73 billion U.S. dollars).

BHP's non-binding proposal delivered on Sunday would have acquired 100 percent of the capital shares of OZL at 25 Australian dollars per share.

OZL's stock peaked in January this year at just under 29 Australian dollars per share. It currently sits at under 19 Australian dollars due to the decline in prices of industrial metals such as copper, nickel and aluminum.

BHP CEO Mike Henry expressed disappointment in the failed deal, citing the offer's "significant premium" to market value for the company.

"The cash offer would deliver immediate value to OZL shareholders and de-risk any value which may (or may not) eventually be reflected in OZL's share price," said Henry.

"We are disappointed that the Board of OZL has indicated that it is not willing to entertain our compelling offer or provide us with access to due diligence in relation to our proposal."

OZL runs two copper and gold mines in South Australia adjacent to large-scale BHP operations. As such the acquisition is likely an attempt from the mining giant to expand its operations in the gold and copper-rich part of the state.

BHP's increasing investment in industrial metals indicates a "future-facing" growth plan, as it divests traditional fossil fuel operations and attempts to gain greater exposure to metals with growing demand.

Copper is most commonly used as a conductor in electrical wiring. It is also a major component of electric vehicles, a market that is expected to boom as nations move towards their net-zero targets. (1 U.S. dollar equals 1.44 Australian dollars)