Private equity funds see promise in battered Aussie mines

Melbourne

PRIVATE funds are trawling for bargains in Australia in the aftermath of a global mining boom, looking to strip the fat at companies and projects they believe hold promise, but which are struggling under the weight of sagging commodity prices.

Big-name funds that dominate the US$2.5 trillion private equity industry generally steer clear of mining which they see as too risky, but a clutch of specialist funds estimated to have at least US$10 billion to invest are on the prowl for opportunities around the world.