PRESS DIGEST-Australian Business News - Dec 31

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN (www.theaustralian.news.com.au)

Australian miner OZ Minerals (OZL.AX) has been given until February 27 to refinance two loans worth US$560 million, after lenders extended the loans for two months.

It is believed several of the company's banking syndicate have indicated they will not grant an extension beyond this date. OZ's chief executive, Andrew Michelmore, said the extension gives the miner a reasonable amount of time to refinance the debt and allows the company to 'work through any asset sales sensibly.' Page 19.

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Investors in the United States (US) have launched a class action against Australia and New Zealand Banking Group ANZ.AZ (ANZ) over the fallout from the collapse of Australian stock broker and margin lender Opes Prime. US law firm Vianale and Vianale allege 'ANZ failed to adequately disclose the range of risks arising from its loans to Opes Prime' to buyers of the bank's American depositary receipts. ANZ is also facing legal action in Australia. The bank says it will be 'vigorously defending' itself against the actions. Page 19.

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Australian eyecare company Vision Group (VMG.L) yesterday said the company had received a number of takeover offers, which had led to shares in the company rising A20 cents to A62 cents, an increase of 48 percent.

Vision's chairman, Shane Tanner, said the offers, from both trade and private equity investors, were non-binding and dependent on the company passing due diligence scrutiny. Vision operates clinics which provide opthalmic treatments for conditions such as cataracts and glaucoma, as well as laser eye surgery. Page 21.

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Major investment banks say coal and iron ore production in Australia may be reduced by up to 40 percent during the next year, cutting company tax revenues to the Federal Government. Deutsche Bank's co-head of natural resources, John MacKinnon, said the expected fall in sales is due to the 'major round of steel production curtailment' which began in late October.

Mr MacKinnon also said the sector was feeling the effect of the tighter credit conditions as banks seek to avoid risk. Page 21.

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THE SYDNEY MORNING HERALD

A rescue package that may result in Chinese investors taking a stake of more than 40 percent in Mount Gibson Iron (MGX.AX) has been approved by the Australian mining company's shareholders. The A$162.5 million package was approved by shareholders at a general meeting in Perth, Western Australia, on Tuesday. In October most of the troubled iron ore miner's steel mill customers defaulted on sales agreements, making the bail-out necessary as the company required further cash. Page 23.

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