(The following statement was released by the rating agency) Oct...

(The following statement was released by the rating agency)

Oct 8 - Fitch Ratings has today assigned OzMinerals Limited

(OzMinerals) a 'BBB-' (BBB minus) Long-term foreign currency

Issuer Default Rating (IDR) with a Stable Outlook.

Simultaneously, the agency has withdrawn Zinifex Limited's

(Zinifex) 'BB+' Long-term IDR and removed it from Rating Watch

Positive.

The rating review follows the completion of the merger

between Oxiana Limited (Oxiana) and Zinifex - which resulted in

the formation of OzMinerals - and the release of financial

reports to 30 June 2008.

The 'BBB-' (BBB minus) rating reflects Fitch's view that the

diversification from Zinifex's historic narrow focus on zinc and

OzMinerals' lead into copper, gold and nickel is positive. In

addition, OzMinerals benefits from a broader portfolio of

producing, near production and prospective mining assets.

"Fitch recognises that the recent sharp fall in mineral

prices and the uncertain global outlook is likely to erode

OzMinerals cashflow," says Maurice O'Connell, Director in the

agency's Corporate team. "However, the 'BBB-' (BBB minus) rating

is supported by a robust balance sheet with around AUD300m net

cash as at 30 June 2008 as well as the imminent commencement of

copper and gold mining at Prominent Hill, which has seen over

AUD1bn in development expenditure," added Mr. O'Connell. Cash

production costs are generally well below current market prices

for minerals and should continue to support positive cash

generation throughout the cycle.

The agency views that any debt-funded acquisitions could

result in downward rating pressure, as could a material weakening

in credit metrics, in the event the cyclical commodity downturn

proves to be deeper than anticipated.

OzMinerals is a mid-tier Australian mining company with a

market capitalisation of AUD4.5bn. Its major producing assets are

the former Zinifex Century zinc mine in Queensland, the Rosebery

zinc and lead mine as well as the Avebury nickel mine in

Tasmania. Former Oxiana mines include the Golden Grove zinc,

copper and gold mines in Western Australia and the Sepon Gold and

Sepon Copper mines in Laos.

Contacts: Maurice O'Connell, Sydney, +61 2 8256 0379; Dan

Ong, Sydney, +61 2 8256 0310.

Media Relations: Shivani Sundralingam, Singapore, Tel: + 65

6796 7215.



Keywords: OZMINERALS AUSTRALIA/RATINGS