Xstrata, Rio Bid for Drummond’s Colombian Assets, Mail Reports

Xstrata Plc and Rio Tinto Group submitted bids of about 5 billion pounds （$7.8 billion） for the Colombian assets of Drummond Co., the Mail on Sunday reported, citing unidentified people familiar with the talks.

The two mining companies made the bids before a deadline set earlier this month by Drummond’s adviser, Bank of America Merrill Lynch, the newspaper said. The assets include a mine, a railroad and port facilities, according to the report.

Rio Tinto spokesman David Luff declined to comment when contacted in Melbourne. Xstrata spokesman James Rickards wasn’t available at his Sydney office or on his mobile phone.

Brazil’s Vale SA and Peabody Energy Corp. may also be interested in the assets, the Mail reported. It wasn’t known whether they submitted bids in the second round, it said.