It is reported that Oz Minerals will defer several capital projects and make substantial cuts to operating cost budgets as a result of the review of capital and operating expenditure. It has also identified further synergy benefits flowing from the merger of Oxiana and Zinifex.

Mr Andrew Michelmore MD & CEO of Oz Minerals said that “The formation of Oz Minerals through the merger of Oxiana and Zinifex was designed to and has created a company with a rich pipeline of future projects and a strong balance sheet. We must ensure we protect this position we worked so hard to create so that we can realize maximum value for shareholders when market conditions improve. The decisions will enable us to either eliminate or defer substantial cash outflows at a time when access to capital is more difficult than at any time in the last decade and when we are in the middle of re financing our debt facilities.”

He added that “These are tough times but we understand the position and we have a very experienced team. We are critically looking at every aspect of our operations to enable us to come through this period without cutting into the fabric of the business.