OZ Minerals Says Chinese May Be Interested in Company

By Rebecca Keenan

Aug. 4 (Bloomberg) -- OZ Minerals Ltd., the world's second- largest zinc mining company, said Chinese companies may be interested in investing in the company following the recent decline in its share price.

``We'd have to be juicy for them,'' Peter Lester, executive general manager of business development of the Melbourne-based company said today at a media conference in Kalgoorlie, Western Australia. Still, ``no-one has rung us and said do you want to learn Mandarin yet,'' he said.

China is snapping up mining assets in Australia to secure supplies of raw materials to help offset a seven-year gain in metal prices. There will be further Chinese investment into Australia, Oz Minerals' Lester said.

``They cannot afford not to put their foot on assets,'' he said. OZ Minerals, created by Oxiana Ltd.'s acquisition of Zinifex Ltd., produces zinc, copper, gold and nickel from mines in Australia and Laos. Buying Zinifex, boosted OZ Mineral's zinc output fivefold and increased lead and silver output.

OZ Minerals' shares fell as much as 6.5 cents, or 3.4 percent to A$1.85 and was at A$1.88 at 1:25 p.m. Sydney time on the Australian stock exchange. The stock has declined 12 percent since the merged company was formed on July 23.

To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net