OZ Minerals Says Western Copper Project Can't Be Approved Until Tax Detail Known

MELBOURNE, May 19, 2010 (Dow Jones Commodities News via Comtex) -- OZ Minerals Ltd. (OZL.AU) Chief Executive Terry Burgess said Wednesday the company won't be able to approve its planned Western Copper project in South Australia until the final terms of the Australian government's proposed Resource Super Profits Tax are known.

Burgess said technical analysis of the project was due to be completed in June and OZ Minerals had planned to start work on an underground decline in September.

"However, in light of the proposed new resources industry tax we will be unable to make a decision on this project until we have certainty on the proposed tax arrangements and therefore the economics of the project," he told shareholders at the company's annual general meeting.

Burgess said the outlook for copper demand remains strong with supply shortages expected to persist.

OZ Minerals has A$1 billion in cash and is looking for potential copper acquisitions but Burgess said it was a competitive market and if a target could not be identified the company would consider returning funds to shareholders.

"However, there are a number of opportunities that we are actively looking at and often it is times of volatility that deliver options," he said.