The group, to be known as Oz Minerals, also reiterated its plans to diversify amid softer demand for zinc. It will also run copper, lead, gold, silver and nickel mines.
'Zinc has defined Zinifex's history and has been an important metal for Oxiana as well,' Oxiana Chairman Barry Cusack told Oxiana's general meeting in Melbourne. 'It is an important but decreasing part of the Oz Minerals' portfolio.
Zinifex shareholders approved the deal last month.
London Metal Exchange-traded zinc <MZN3> has lost over 20 percent of its value since January as supply outpaces demand.
Credit Suisse forecasts an overall 23 percent drop in zinc prices in 2008 versus 2007, then falling 11 percent and 25 percent over the following two years.
In contrast, the bank sees no signs of copper prices recoiling. Copper is earmarked to be the new company's top revenue getter once a new mine in Australia, called Prominent Hill, starts near the end of 2008, Cusack said.
Copper <MCU3> sold for a record $8,940 a tonne this month.
($1=A$1.02)
(Reporting by James Regan; Editing by James Thornhill) . ng COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2008 AFX News
