China Minmetals Corp has negotiated a new investment plan with Australia's OZ Minerals to buy most assets of the miner after the Australian government rejected its earlier takeover proposal due to security concerns.

China's biggest metals trader will spend A$1.75 billion ($1.2 billion) to take over OZ Minerals' zinc, gold and copper projects in Australia and Laos and certain other exploration and development assets, OZ Minerals yesterday said in a statement on its website.

Minmetals last month offered the Australian miner 82.5 cents per share (a 50 percent premium) but the proposal was rejected by Australia's Federal Treasurer Wayne Swan since OZ Minerals' Prominent Hill mining operations were situated close to a sensitive weapons-testing site. But he agreed to consider the deal if that mine was excluded.