kpmg, page-2

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Oz Minerals may sue auditor: report
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Oz Minerals Ltd may sue its auditor KPMG as part of its defence rejecting allegations brought by shareholders that its interim financial report ending June 30 2008 understated current liabilities by about $320 million, according to media reports.

In a defence filed by Oz Minerals in the Federal Court last month, the miner rejected the claims and said it was entitled to describe the debt as non-current - that is not due to be repaid within a year.

The Australian Financial Review said that the miner plans to join its auditor to the class action brought by shareholders if the debt was found to be a current liability.

KPMG reviewed the company's June 2008 accounts, and Oz Minerals may file a cross-claim against its auditor in order to claim a contribution from KPMG if it is ordered to pay compensation to its investors.

Justice Arthur Emmett has allocated time on April 30 to hear details of legal procedural issues relating to joining KPMG to the case, but no date has been set for the main hearing of the class action, according to The Age.

Oz Minerals sold four of its five operations to China Minmetals Non-Ferrous Metals Co Ltd for $1.73 billion in June last year.

In February, the miner reported a loss of $517.3 million for the 12 months to December 31, compared to a loss of $1.22 billion in 2008.

The company operates the Prominent Hill copper and gold mine in South Australia, which produced a net profit of $202.6 million, for the 2009 financial year.