start counting your chickens fellows...Owen Hegarty joins China...

start counting your chickens fellows...

Owen Hegarty joins China Sci-Tech
Sarah-Jane Tasker From: The Australian March 26, 2010 10:52AM

FORMER Oxiana boss Owen Hegarty has been appointed vice chairman of China Sci-Tech ahead of its plan to resume production at Australia's Lady Annie copper mine.

Hong Kong listed China Sci-Tech purchased the mine from Tony Sage's Cape Lambert Resources for $386 million and also announced today it had acquired a majority interest in a large copper project in Peru.

"The acquisitions represent a major strategic step made by the company to transform into a leading copper mining company,'' Chiu Tao, chairman of China Sci-Tech, said.

"Going forward, we will continue to look for quality copper investment opportunities aiming to enhance shareholder value further.''

Cape Lambert had proposed to float the mine on the Australian exchange but abandoned that plan last month due to adverse market conditions and began fielding offers for a sale.



China Sci-Tech appointed Mr Hegarty as executive director and vice chairman through the Lady Annie deal, which Mr Hegarty helped complete.

Lady Annie has been on care and maintenance since February last year.

Targeted production this year is 20,000 tonnes, rising to 25,000 tonnes in 2011 with exploration work planned to extend the mine's life to a minimum of seven years.

The Lady Annie assets include open-pit mines and a heap leach processing plant, as well as thousands of square kilometres of exploration tenements in Queensland's north.

China Sci-Tech said it believes that the estimated capital costs to restart the Lady Annie plant, in Queensland, is around $8.2m.

Production is expected to restart in December 2010, with copper cathode being produced from the heap leach operation.

"The global market for copper at approximately 19 million tonnes per annum is strong and expanding - approximately 46 per cent is supplied by Australia and South American countries including Peru,'' Mr Chiu said.

"In the face of the sustainable economic growth of China and its increasing consumption of natural resources, we are upbeat about the future prospect for the copper mining industry.''