OZ Minerals Ltd., selling mines to China Minmetals Group, said production at its A$1.2 billion ($848 million) Prominent Hill copper and gold operation in South Australia state is likely to meet its annual forecast.

The mine produced 4,338 metric tons of copper and 5,567 ounces of gold in the three months ended March 31 after starting output late February, Melbourne-based OZ said today in a statement to the Australian stock exchange. OZ Minerals has forecast output of 100,000 metric tons of copper and 70,000 ounces of gold this year.

Production from its Century operation, the world's second- largest zinc mine, dropped 20 percent to 101,961 tons in the quarter after what the company said was the heaviest wet season in Century's history. Operating costs at the mine fell 15 percent from the December quarter.

OZ Minerals, forced to sell zinc, copper and nickel mines to repay A$1.1 billion of debt, is awaiting a ruling from the Chinese government and a shareholder vote to complete the sale to China's largest metals trader by mid-June. Prominent Hill will be company's only mine following the sale.