MIM to sell oil, gas business

MIM to sell oil, gas business

SYDNEY (Reuter): Australia's MIM Holdings Ltd said yesterday it had decided to sell its oil and gas interests.

MIM manager of corporate affairs Collin Myers told Reuters the company had not placed a sale price on the assets, which mainly comprise of oil and gas exploration assets in Australia, Indonesia and Papua New Guinea (PNG).

The assets include a seven percent stake in the Gobe oil project in PNG, the Bentu gas project in central Sumatra, Indonesia and in the Carnarvon Basin, offshore Western Australia, MIM said.

"MIM will retain its south-west Queensland gas properties because of their strategic value to the Mount Isa operations," chief executive Nick Stump said in a statement.

The Mount Isa base metal mine in northern Queensland is MIM's main asset.

"MIM is focusing on minerals such as copper, gold and silver, lead and zinc, at the same time as building value back into its coal assets," Stump said.

"The oil and has business does not fit strategically within MIM's minerals-based future," he said.

"While the sale process proceeds, MIM will actively continue the business and honor all its permit and joint venture obligations both as a participant and as an operator," he said.

He said HBSC James Capel had been appointed by the company to conduct the trade sale of the assets.

At 3:45 p.m. (05:45 GMT), MIM shares were four cents lower at A$1.89.