OZ may sell N. Sumatra gold project

Australia?s third largest diversified mining firm OZ Minerals Limited reported on Wednesday that it had received a number of expression of interests from corporate and financial investors to acquire its Martabe gold project in North Sumatra, and in respect of JV arrangements for Prominent Hill copper-gold project in Australia.

?Each of these parties has executed Confidentiality Agreements and all parties are at various stages of due diligence,? the company said without disclosing suitors? names.

?Based on confidential and incomplete negotiations, OZ Minerals is positive about the potential for the negotiations to lead to commercially acceptable offers being made. However, OZ Minerals cannot predict if or when any of these expressions of interest may lead to a firm proposal being put to the company,? it added.

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. (alex)