oz mineral target for china

DJ OZ Minerals Says It Could Be A Target For China04/08/2008 01:50PM AEST

KALGOORLIE, Australia (Dow Jones)--China will continue to make takeover bids for Australian mining companies and could target mid-tier miner OZ Minerals (OZL.AU), the company's head of business development, Peter Lester, said Monday.

"You would have to think, certainly at this share price, that they would be," he told reporters on the sidelines of the Diggers & Dealers conference in Kalgoorlie.

A weak zinc price has weighed on OZ Minerals' shares, but Lester said the miner expects a sharp rise in the zinc price in the coming year as supply constraints continue.

OZ Minerals is also positive on the outlook for nickel and believes the copper price will continue to be "extremely robust".

The strong Australian dollar is posing a challenge to the company, but Lester said OZ Minerals wouldn't consider currency hedging, which he said had been a disaster for many Australian miners in the past.

Lester said OZ Minerals continues to look at a number of potential acquisitions but has recently been focused on bedding down its merger with Zinifex.


-By Alex Wilson, Dow Jones Newswires;