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Rio Tinto Seeking To Offload Canadian Iron Ore Biz

Rio Tinto PLC (RIO) is reportedly seeking to divest its Canadian iron-ore business for a possible consideration worth $6 billion.

According to Sky News, the Anglo-Australian mining giant has begun courting potential bidders for its $6 billion Canadian iron-ore? operations as it seeks to take advantage of a rebound in the commodity's value.

The report says Rio Tinto has hired investment bank Credit Suisse to conduct an auction of its majority stake in Iron Ore Company of Canada (IOC).

Rio Tinto, which owns 58.7% of IOC, has been already approached by ArcelorMittal and Teck Resources.

Rio is also said to be considering an initial public offering on the Toronto Stock Exchange of IOC, on which Royal Bank of Canada has been hired to advise.

Reports says that the $6bn price is "high but not inconceivable" as iron ore prices have rebounded and reached their highest level since February. Iron ore is now trading around $68 per ton.

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