Commodities trading giant Glencore Xstrata plc (GLEN.L, GLNCY) and private-equity giant Blackstone Group LP (BX) are among the suitors looking to float bids for the Canadian iron-ore operations of Anglo-Australian mining giant Rio Tinto plc (RIO,RIO.L, RIO.AX), according to media reports on Sunday.
Rio Tinto had put the business on the block in March, and has already received first round of bids for it. Rio Tinto is selling its 58.7 percent stake in the Iron ore Co. of Canada, which is reportedly valued at around $4 billion.
The other potential bidders that are in the fray to acquire the stake include India's Hindalco Industries Ltd. and India-focused miner Vedanta Resources plc (VED.L). Hindalco, run by India's Aditya Birla Group, is one of Asia's largest producers of primary aluminum.
Many foreign prospective buyers are said to be interested in these Canadian assets, but considering the size of the mines and their infrastructure, some potential bidders are believed to be looking at mounting joint offers.
Additionally, Rio Tinto is also reportedly looking to spin-off its diamonds business into a separately traded company on the London Stock Exchange, a listing which could be worth up to $5 billion. The move comes after a strategic review of the business since March 2012.
Rio Tinto announced in March 2012 that it was looking into selling its diamond business and commenced a strategic review of the business. The company also said the business will operate as usual until the completion of the review of the diamonds portfolio, which is expected to take some time.
Rio Tinto is the third-largest producer of rough diamonds in the world by volume, behind Alrosa Co. and De Beers, and also the world's largest producer of colored diamonds.
The diamonds business includes Rio Tinto's 100 percent interests in the Argyle Diamond Mine in Australia and the Bunder Diamond Mine in India, as well as its 60 percent interest in the Diavik Diamond Mine in Canada and 78 percent interest in the Murowa Diamond Mine in Zimbabwe.
Recent reports have suggested that Rio is also close to offloading its 60 percent stake in the Diavik diamond mine in Canada.
The company also operates a niche cutting and polishing factory in Perth for the rare pink diamonds from its Argyle mine.
RIO closed Friday's regular trading session at $42.72, down $1.82 or 4.09% on a volume of 4.99 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.