OZ close to conclude deal to sell N. Sumatra gold mine

ASX-listed mining firm OZ Minerals is close to announcing the sale of its Martabe gold mine in North Sumatra, which is tipped to go to a vehicle headed by former OZ Minerals director Owen Hegarty, The Australian reported on Friday.

The possible sale follows a A$2.6 billion bid for the debt-laden miner by China's Minmetals.

OZ in November 2008 suspended development activities at Martabe until after 2009 in the face of worsening global economic slow down.

OZ?s initial plan is to start Martabe production late 2009 with annual output of 200,000 oz of gold and 2 million oz of silver. Estimated capital cost to develop the project is US$310 million. (*)