Posted in | Mining Business | Potash

Rio Tinto Not Interested in PotashCorp

Speculation over who is likely to make a bid for PotashCorp is growing with bids from Rio Tinto and a Chinese partner being considered as likely candidates.

These bids were expected to rival BHP Billiton's $40 billion offer. However this may not be the case at all as Rio Tinto says it is looking to focus on growth by expansion and acquisitions of a smaller size.

The conclusion of the USB analysts after meeting Chief Executive Officer Tom Albanese is that the Rio Tinto Group would not be making a bid for PotashCorp. The analysts also said that the focus of the group would be to restructure the growth of projects which got curtailed in the past two years due to the global financial downturn.

The underground expansion of the Argyle diamond mine or the expansion of its iron ore operations, refurbishing aluminium smelters and getting down to develop the Oyu Tolgoi copper mine in Mongolia are more likely to be on the priority list for the Rio Tinto Group.

A not too recent Canadian export cartel is now proving to be a negotiation issue for BHP Billiton in its offer to PotashCorp of Saskatchewan inc. The cartel from the seventies called Canpotex Ltd allows its members to negotiate prices together overseas. However BHP Billiton does not wish to sell through the cartel.

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