Anglo-Swiss mining group Xstrata has confirmed it is in talks with other industry players regarding a possible affiliation.
The news comes as the world's largest miner BHP Billiton said it will continue to seek takeover talks with fellow Anglo-Australian mining giant Rio Tinto.
'Xstrata confirms that its ongoing interaction with other industry participants includes dialogue with a number of parties covering a range of topics of mutual interest such as industry consolidation,' said a short statement from the firm.
'Xstrata is continually reviewing opportunities within the industry with a view to adding value to its shareholders. None of these very preliminary discussions have resulted in any proposal being made either for or by Xstrata and there can be no certainty that any such proposal will result,' it added.
Last week the market reacted to speculation that Xstrata could be a takeover target for Brazil's Companhia Vale do Rio Doce (CVRD).
CVRD, along with BHP Billiton and Rio Tinto, controls most of the world's iron ore supplies.
China, a major buyer of iron ore, has emerged as a possible counter-bidder for Rio Tinto, seeking to prevent a combination which would have too much control for its comfort over a strategic material.
BHP said today that the bid it tabled last month offering three of its shares for one Rio Tinto stock represented 'compelling value' for shareholders in the target company.
Rio Tinto has rejected the offer, which values it at more than $130 billion, and yesterday revealed it had asked British regulators to set a deadline forcing its suitor to make a formal bid or back off for six months.
