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Zinifex-Oxiana $12b merger on track 7:00 PM

Zinifex Ltd boss Andrew Michelmore expects the combined Zinifex-Oxiana entity to be an attractive prospect for any potential offers, with the merged company better positioned for growth.

In an interview in the Business Spectator’s KGB interrogation, to be published on Saturday, Mr Michelmore also said that despite a 35 per cent fall in zinc prices the merger was still on track.

$12 billion merger is subject to approval by Zinifex shareholders at a meeting on June 16 2008.

“We believe the combined company is actually an even more attractive entity for anyone who would be looking at either of us and they would probably wait till both companies have merged together.”

Mr Michelmore also said the miner was interested in nickel sulphides and saw a number of nickel opportunities, as long as they add value to the company.

“Certainly we’re interested in nickel sulphides and been some pretty impressive drill results.” Mr Michelmore said.

Last month, Zinifex said it expected to report lower earnings in the second half of the 2008 fiscal year as zinc prices continue to fall.

The company said its earnings would be lower as after it had experienced higher zinc and lead treatment charges in the second half of 2008.

Zinifex said cost pressures from energy, labour and other commodities outlays would also impact its second-half earnings.