13 May 2009

What are they thinking at Oz Minerals?

The Martabe mine seems an outstanding asset well within the competance of Oz minerals to develop, I predict that the gold price in 24 months will make this decision seem stupid. I mean are'nt they out of debt and getting cash flow from Prominent Hill?

Dumb, imo.

May 12 (Bloomberg) -- China Sci-Tech Holdings Ltd., a Hong Kong-based real estate developer turned minerals investor, will buy the Martabe gold-mining project in Indonesia from Australia’s Oz Minerals Ltd. for $211 million.

The Martabe project may require a further $284.5 million of investment to bring it into production, China Sci-Tech said in a statement to the Hong Kong stock exchange today.

China Sci-Tech, suspended since April 24 in Hong Kong pending the announcement, will resume trading tomorrow.

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