‘Vast majority’ of OZ Minerals jobs in SA to stay after BHP takeover
BHP says most of OZ Minerals’ 660 South Australian workers will be kept on after the Federal Court rubber stamped an overwhelming yes vote to sell the highly successful company to the mining giant for $9.6 billion.
Workers at the OZ Minerals Carrapateena mine now owned by BHP in South Australia. Photo: OZ Minerals
A BHP spokesperson said the company intended to “retain the vast majority of OZL employees and bring together the best from both companies as we look to grow the combined South Australian copper business over time”.
“Our focus will be on maintaining safe and reliable mining operations and we expect minimal change to positions in the short term, besides some reporting lines,” she said.
“We’ll work through any individual role considerations for the combined business over the coming several months.”
The court approved a scheme of arrangement yesterday meaning OZ Minerals’ more than 43,000 shareholders will be paid an initial $1.75 for each of their shares on Friday, April 21, and another $26.50 for each OZ Minerals share on Monday, April 24.
OZ Minerals managing director and chief executive officer Andrew Cole will also be paid about “$6 million cash in relation to his entitlements under OZ Minerals’ incentive plans”, chair Rebecca McGrath said before the vote last week.
It is the second multi-billion-dollar sale of an SA-based company following the Shahin family signing a deal this month to sell its OTR Group and service station network to a Victorian business for $1.15 billion.
The copper and gold company OZ Minerals moved its head office to Adelaide from Melbourne in 2015 with the help of a $10 million grant from the SA Government, later moving into a site at Adelaide Airport.
A State Government spokeswoman previously gave assurances that there is no requirement for the taxpayer funds committed to the move to be repaid as “Oz Minerals has fulfilled its obligations under the grant to move its headquarters to Adelaide”.
OZ Minerals is listed at number two behind Santos in InDaily’s South Australian Business Index with revenue exceeding $900 million.
BHP is now set to control the company’s famed copper and gold mines at Prominent Hill and Carrapateena along with its high-potential West Musgrave copper and nickel project in Western Australia, and interests in Brazil.
There were 98.33 per cent of votes in favour of the takeover offer with 88.34 per cent of shareholders present and voting during the crucial meeting last Thursday.
BHP had been circling the copper and gold miner since early last year when its first $8.4 billion bid to take over OZ Minerals was swiftly rejected by its board.
This time, the board urged shareholders to take the deal.
