MELBOURNE, Oct 26 (Reuters) - Australian base metals miner Aeon Metals AML.AX said on Wednesday it was interested in parts of MMG Ltd's 1208.HK giant Century zinc mine, but would be unable to shoulder all of the liabilities of the mine that was wound down last year.
"Aeon is unable to pursue a transaction based on MMG's preferred structure which involves taking on all the assets and liabilities associated with the Century mine and infrastructure," it said in a notice to regulators.
"Nevertheless, Aeon has made clear to MMG its interest in certain assets of Century."
Clean up costs at Australia's largest open-cut zinc mine stand at $378 million, nearly 10 times the market capitalisation of Aeon Metal, at A$48.7 million ($37.2 million). the Hong Kong-listed arm of state-owned China Minmetals Corp, had to hike its estimate of closure provisions more than 60 percent just months before shuttering the mine last year as the cost of remediation became clearer.
The work includes capping and compacting waste dumps, and rehabilitating an evaporation pond and a tailings dam, but doesn't involve filling the open pit, which covers 3.5 square km (1.4 sq miles).
MMG was unavailable for immediate comment.
Major miners have been trying to sidestep hundreds of millions of dollars in closure costs by selling off pits and infrastructure, but the cost of environmental rehabilitation has made it tough to seal deals. ($1 = 1.3082 Australian dollars)