"PAUL BARRY: Century’s owner, Oz Minerals, has been hit by the credit crunch as well. It has been trying to refinance $1 billion worth of debt since November last year. And even though its assets might be worth $5 or $6 billion, its shares are suspended and the company's in danger of being broken up.
PAUL BARRY (to John Lamb): If you’ve got a decent mine which is worth plenty of money and you’re nine months away from making it profitable at virtually any metal price, how the hell is it that the banks won’t lend you money to tide you through that period?
JOHN LAMB, GENERAL MANAGER, CENTURY MINE: Oh well, I guess that’s a question for the banks. But that’s, that’s exactly our position. This is an excellent asset. It’s a world class mine. It’s run very well and it’s and it’s worth fighting for, you know.
PAUL BARRY: It hasn’t helped that the Royal Bank of Scotland is the company’s lead bank. Two weeks ago it announced a whopping $60 billion loss, mainly on subprime mortgages, and had to be rescued by the British Government.
But Oz Minerals is also relying on several Australian banks, including the Commonwealth. And local economist Carey Ramm believes that they too have become much too tough on deserving businesses."
