this one is and has been a no brainer , page-9

LEAD and zinc mining giant Zinifex is close to naming a new chief executive, with the board in talks with a final candidate, reportedly ex-WMC boss Andrew Michelmore.

Getting a new CEO in place is an increasingly urgent priority for Zinifex with consolidation in the global mining sector set to peak as the world's biggest miner, BHP Billiton, tries to convince rival Rio Tinto to agree to a $US360 billion ($394 billion) merger.

And Zinifex is an attractive cash box for a predator with $1.7 billion in proceeds from the float of its smelting assets as Brussels-based Nyrstar now sitting in its bank account.

Zinifex shares jumped 4.3 per cent to $15.45 a share on Friday as mining stocks were bid up on expectations of further takeovers.

The appointment of the ambitious Mr Michelmore would send a signal that Zinifex is determined to forge its own destiny rather than be a passive target, and Mr Michelmore would be expected to seek to use the Nystar proceeds to grow the company.

Before returning to Australia last month, Mr Michelmore was a senior executive at Basic Element, the holding company of Russia-based global aluminium giant Rusal, giving him a broad set of connections beyond his WMC days.

But whether Mr Michelmore, if he is appointed, will have much time to act is questionable. And he risks a serious bout of deja vu if as new CEO his immediate role is to conduct a bid defence.

Mr Michelmore was left with the job of trying to navigate an independent future for WMC when former boss Hugh Morgan spun off the alumina business as Alumina Ltd to stave off a takeover from Alcoa.

WMC instantly became the market's favourite takeover target, in 2005 BHP duly bought it for $9.2 billion after Mr Michelmore had headed a long-running defence against initial bidder Xstrata.

Indeed the perception that Zinifex is a target is believed to be why it has taken the board so long to find a replacement for Greig Gailey, who left in June is and now chairman of the Business Council of Australia.

An option for Zinifex is a long-tipped merger with fellow Australia mid-tier miner Oxiana, talks with which earlier in the year came to nothing.

Oxiana chief executive Owen Hegarty wants to aggressively grow Oxiana into a diversified miner, and had a good look at nickel miner Jubilee before Xstrata beat off competition from BHP with a $3.1 billion bid.

The Australian understands that Oxiana had about four months ago taken a serious look at emerging copper producer Equinox Minerals, which is aiming to start production next year at its Lumwanna copper project in Zambia.

Since then Equinox shares have soared up from about $3.40 in August to now be $5.84 a share, valuing it at $3.3 billion.