Zinifex in Talks for Future Mine Ventures, CEO Says (Update1)
By Jesse Riseborough
bloomberg.com
April 18 (Bloomberg) -- Zinifex Ltd., which last month agreed to a A$5.4 billion ($5.1 billion) takeover from Oxiana Ltd., is in talks with customers for partnerships to develop new mines.
``We have just started those initial talks and particularly by putting the companies together we are able to say `now look, look at the spread at what we have got,''' Chief Executive Officer Andrew Michelmore said today at an industry luncheon in Melbourne. ``We are seeing customers who have the investment expertise and the links to the market downstream.''
Oxiana agreed to buy Zinifex to create the world's second- largest zinc miner. It will also produce copper and gold and have projects in Australia, Laos, Indonesia, Cambodia, Thailand and Canada. Metals customers may seek a ``strategic block'' in future projects to secure long term supply, Michelmore said.
``It might be where we are looking at an opportunity in another country where maybe this does need some risk management by bringing in other companies,'' he said.
Zinifex fell as much as 38 cents, or 3.6 percent, to A$10.11 and traded at A$10.15 at 3:02 p.m. Sydney time on the exchange. Melbourne-based rival Oxiana agreed to buy Zinifex for 3.1931 of its shares for each Zinifex share on March 3.
Zinifex is negotiating sales contracts for future zinc and lead output from its Dugald River project in Australia, he said. The company won't be seeking a partner for this project, he said.
To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net
Last Updated: April 18, 2008 01:38 EDT |
