“This acquisition strengthens BHP’s portfolio in copper and nickel and is in line with our strategy to meet increasing demand for the critical minerals needed for electric vehicles, wind turbines and solar panels to support the energy transition,” BHP chief executive officer Mike Henry said.

“Combining our two organisations will provide options for growth, bring new talent and innovation to unlock these resources in a sustainable way, and deliver value to shareholders and communities.”

The takeover will allow BHP to focus on safe and reliable operation of the Olympic Dam, Prominent Hill and Carrapateena assets.

This week OZ shareholders received $28.25 per OZ share, marking the implementation of the scheme of arrangement. This follows approval of the $9.63 billion deal by the Federal Court earlier this month.

The revised offer was an increase on the original $8.4 billion offer made in August 2022.

OZ Minerals has a number of operations in Brazil, including the Santa Lúcia iron oxide copper-gold mineral deposit, the Antas copper-gold mine, and CentroGold, one of the largest undeveloped gold projects in Brazil.

The acquisition gives BHP access to the company’s significant portfolio of future-facing minerals – namely copper and nickel – that are vital to the world’s push for clean energy.

In its final ever quarterly report, OZ Minerals produced 31,362 tonnes of copper and 46,722 ounces of gold.

“As this is the final production report from OZ Minerals, the board and management would like to thank all our stakeholders for their contribution to the company’s success,” OZ Minerals chief executive officer Andrew Cole said.

BHP has indicated that it intends to retain the majority of OZ Minerals’ workforce, particularly at Prominent Hill and Carrapateena.

Australian Mining.

In the early hours of Anzac Day, 25-year-old Nathan Scholz lost his life following an incident on a surface access road at the South Australian mine.

According to South Australian police, the incident occurred around 5:30am on Tuesday. While the specific details of the accident remained undisclosed, it is believed that the man may have been struck by a vehicle at the mine site.

Nathan Scholz worked for Exact Mining Services, a contracting partner to BHP.

“Our deepest sympathies are with Nathan’s family, friends and colleagues, and our primary focus is supporting them at this difficult time,” BHP said in a statement.

“We are working with South Australia Police and SafeWork SA to understand what happened and support their investigations. BHP is also conducting its own investigation.”

Serious incidents often lead to the revaluation of safety protocols. After the Dugald River mine tragedy, where two men died when their vehicle fell into an underground void, Perenti launched a safety transformation taskforce.

The taskforce brought together renowned mining and safety experts from across the globe and is expected to enhance Perenti’s safety procedures.

Perenti intends to share relevant findings with the broader mining industry to drive industry-wide positive safety and critical control improvements.

Australian Mining.

According to South Australian police, the incident occurred around 5:30am on Tuesday. While the details of the accident remained undisclosed, it is believed that the man may have been struck by a vehicle at the mine site.    

Major Crash police arrived at the site and began an investigation.  

A BHP spokesperson said the company was working with authorities to determine how the incident occurred.  

“We are deeply saddened to confirm that a member of our workforce died this morning at our Olympic Dam site,” the spokesperson said.  

“The cause of death remains unclear. 

“Our thoughts are with the person’s family, friends and colleagues and we are offering all the support we can during this difficult time. 

“We are engaging with SafeWork South Australia and South Australia Police Service in relation to the incident.” 

Police are preparing a report for the coroner. 

Olympic Dam is a copper, uranium, silver and gold mine located roughly 560km north of Adelaide. It is one of the largest copper and uranium deposits in the world.  

Australian Mining.

Andrew Cole, who has served as OZ Minerals’ chief executive officer since 2014, confirmed last week that he will not be joining BHP and would instead take a break.

After punching his ticket, Cole will be walking away with $6 million in cash related to his entitlements with OZ Minerals.

Michelle Ash, who joined OZ Minerals in 2022 in the role of technology executive, will move to BHP. According to the Australian Financial Review, Ash will work under chief operating officer, Edgar Basto, to develop a copper province in South Australia.

“The team will work closely with the Olympic Dam, Carrapateena and Prominent Hill teams to develop the growth projects and infrastructure required to build a copper province in South Australia,” Basto said an internal memo, as reported by AFR.

Outside of the board room, BHP has indicated that it intends to retain the majority of OZ Minerals’ workforce, particularly at Prominent Hill and Carrapateena.

“BHP has stated publicly that it intends to retain the vast majority of the people,” OZ Minerals chairperson Rebecca McGrath said at a shareholder meeting in April.

“It also stated that it has a high regard for the culture and people of the company, as we have some very important operating assets here in South Australia and our projects in Western Australia and Brazil.

BHP’s takeover of OZ Minerals is expected to be implemented by May 2, following approval of the $9.63 billion deal by the Federal Court earlier this month.

OZ Minerals has a number of operations in Brazil, including the Santa Lúcia iron oxide copper-gold mineral deposit, the Antas copper-gold mine, and CentroGold, one of the largest undeveloped gold projects in Brazil.

The acquisition gives BHP access to OZ Minerals’ significant portfolio of future-facing minerals – namely copper and nickel – that are vital to the world’s push for clean energy.

Australian Mining.

As reported by Reuters, Australia saw $37 billion worth of M&A deals in the first quarter, with the trend expected to continue throughout the year.

Last week saw Newmont make its best and final offer for Newcrest, which was an overall valuation of $29.4 billion with an implied value of $32.87 per share. Reuters said the offer helped drive a 192 per cent surge in inbound M&As into Australia so far.

Last week also saw the Australian Federal Court approve BHP’s $9.63 billion takeover of OZ Minerals as the final step in completing the acquisition, with the takeover expected to be implemented on May 2.

Mineral Resources recently acquired over 80 per cent of Norwest shares and Wyloo Metals made a $760 million offer to Mincor Resources, saying the offer is best and final, with further movement yet to be made.

These are just a few examples of recent mergers and acquisitions taking place in Australia, but why are they happening so frequently?

Reuters said the increase in deals between mining companies has been mainly supported by cash-rich miners looking to expand quickly to keep up with the rising resource demand.

Additionally, carrying out mergers and acquisitions is an opportunity for mining companies to divest its fossil fuel portfolios and to be positioned at the forefront of the green energy transition.

Partner at Herbert Smith Freehills, a law firm, Kam Jamshidi told Reuters a perfect storm is brewing in resources M&A.

“Most powerfully, portfolio redesign for the energy transition is in full swing,” Jamshidi said.

Australian Mining.