Resources Consolidation: Oxiana Next?

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By Rudi Filapek-Vandyck

Most close followers of the resources sector have little doubt, but Oxiana (OXR) head honcho Owen Hegarty is not so sure yet. Speaking at the Reuters Global Mining and Steel Summit Hegarty stated he wasn’t sure at this stage whether Oxiana would remain predator or fall prey to a bigger player in the industry.

One thing is certain though, Owen admitted, and that is that mergers and takeovers are changing ownership of big mining houses worldwide and this process is to continue.

According to the local rumour mill, Zinifex (ZFX) and Anglo American are possible suitors for Oxiana. Zug-headquartered Xstrata is always mentioned when the subject is consolidation.

Hegarty reportedly also said he’d like to see Oxiana reach a market capitalisation of $10bn by 2010. If the company is still independent by then.

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