Mr Andrew Michelmore former head of OZ Minerals Limited said that Minerals and Metals Group, or MMG the Australian unit of China Minmetals Corporation may pursue iron ore assets.

Mr Michelmore said that “The key for us is to grow the business, grow it in value. If we can find an opportunity that does add value, with good returns, then we should pursue it.”

Minmetals, which this week bought USD 1.4 billion of mines from OZ Minerals, now controls the world’s second biggest zinc mine through its Australian unit. China, the world’s biggest consumer of raw materials, has been securing overseas mineral assets and investing in producers to bolster economic growth.

Mr Mark Pervan a senior commodity strategist at Australia & New Zealand Banking Group Limited in Melbourne said that Mr Michelmore brings to the table a wealth of information about the domestic industry and opportunities within the industry. China has got a massive balance sheet and it is prepared to use it.”

Mr Michelmore agreed to sell almost all of OZ Minerals’ assets to repay AUD 1.1 billion in debt after a rout in commodity prices. MMG owns the Century zinc and lead mine in Queensland state the Rosebery zinc and lead and Avebury nickel mine, both in Tasmania state and the Golden Grove mine in Western Australia.

(Sourced from Bloomberg)