OZ Minerals- Minmetals agree sale terms

Zinc and gold miner OZ Minerals has formally agreed on terms to sell many of its assets to a Chinese state-owned company.

Oz Minerals says in a statement the commercial terms for the sale of certain assets excluding the Prominent Hill and Martabe mines has been signed.

Under the deal, China Minmetals Non-ferrous Metals Co will buy the assets for $US1.206 billion ($A1.65 billion).

The deal comes after the Foreign Investment Review Board recently blocked on national security grounds a bid by Minmetals to include Prominent Hill in the sale.

"Once implemented, this transaction will provide a complete solution to our financing issues," said OZ Minerals chief Andrew Michelmore.