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Rio Tinto shortlists bidders for Iron Ore Co of Canada stake

3 Jun 2013

mining_lrgMining giant Rio Tinto has reportedly put together a short list of five to six bidders for Canadian iron ore miner Iron Ore Co of Canada (IOC), which has drawn interest from private equity firm Blackstone.

IOC, which is currently Canada’s largest miner, could be valued at $8bn with Rio Tinto asking $3.5bn to $4bn for its 59 per cent stake, said Reuters, citing sources with knowledge of the situation.

“The biggest issue is whether Rio is going to get its reserve price,” said on of the sources.

Rio initially received offers from as many as 15 suitors last month after putting IOC on the block earlier this year.

The group will also try to attract more offers, especially from Chinese suitors, said the sources, adding that it is unknown when the deadline for binding bids is.

In addition to Blackstone, Glencore Xstrata has also been reported to be interested in the business.

Another buyout major Carlyle has recently made a bid for Rio Tinto’s 80 per cent stake in the Northparkes copper-gold mine in Australia, which has also drawn interest from KKR.

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