The court’s approval means the A$9.6Bn (US$6.4Bn) buyout will go ahead.

The Federal Court of Australia has made orders approving the scheme of arrangement for BHP Lonsdale Investments (wholly owned subsidiary of BHP Group) to acquire 100% of the shares in Australian copper producer OZ Minerals. BHP revealed this will become effective on 18 April 2023 on lodgement of the Court’s orders with the Australian Securities and Investment Commission and will be implemented on 2 May 2023. 

Australia’s largest mining company, BHP, failed with an initial A$8.4Bn bid for OZ Minerals back in August. Since then, renewed discussions resulted in a breakthrough offer that OZ Minerals recommended shareholders approve.

OZ Minerals already produces copper concentrate at its Prominent Hill mine in South Australia and had taken a final investment decision to proceed with the West Musgrave copper-nickel project in Western Australia. The successful commissioning of this project would provide additional nickel concentrate for BHP’s Class I nickel and battery-grade nickel sulphate production at its Kwinana refinery.

Over recent years, BHP has restructured its business, placing a high priority on commodities that are used in clean energy applications, such as copper and nickel. At the same time, it has also dumped stakes in coal mines and offloaded its oil and gas division. Significantly for the mining industry, the takeover represents further consolidation activity as other miners look to secure the critical materials that will enable the clean energy transition.