(Minews) - OZ Minerals Ltd. (OZL) will consider selling a majority stake in its planned A$3 billion ($2.7 billion) development of Australia’s largest unmined copper deposit after receiving approaches from potential partners.
Major copper producers have been involved in “early stage discussions” on the Carrapateena project in South Australia, Chief Executive Officer Terry Burgess, who will be step down within the next 12 months, said today on a media call after reporting the company swung to a full-year net loss of A$294 million. The shares rose to a four-month high in Sydney.
Any partners would be taking a stake amid forecasts global copper supplies could become constrained after producers delayed or canceled development of new mines due to weaker prices. Glencore Xstrata Plc (GLEN), Trafigura Beheer BV and First Quantum Minerals Ltd. (FM) may be among those interested in acquiring a holding in Carrapateena, David Coates, a Sydney-based analyst at CIMB Group Holdings Bhd. (CIMB), said by phone.
“There’s only a handful of local mining companies that could do this” such as BHP Billiton Ltd. (BHP), Rio Tinto Group and Newcrest Mining Ltd. (NCM), CIMB’s Coates said. “I don’t think any of those are on the cards.”
Melbourne-based OZ Minerals, the nation’s third-largest copper producer, rose 13 percent to A$3.83 in Sydney, the highest since Oct. 16.
Baar, Switzerland-based Glencore and closely held Trafigura both declined to comment in e-mails on whether they’ve held or are seeking talks with OZ Minerals. Vancouver-based First Quantum didn’t immediately respond to e-mails seeking comment sent outside usual office hours
