Xstrata Looking at Entering Congo, Expanding Aluminum, Iron ore

LONDON, June 3 - Mining group Xstrata is interested in entering the Congo and possibly expanding its spread of commodities to aluminium and iron ore, said Mark Sawyer, general manager for business development yesterday. He also added that Xstrata has not had any further talks with Vale, who proposed a takeover in February, but in April Vale said the $50 billion in financing arranged for the potential takeover had expired, which would be one of the world’s largest takeover deals. Central Africa and especially the Democratic Republic of Congo are rich in mineral deposits, which are alluring areas for expansion, but this would depend on the asset and price, said the manager. "We're continually studying opportunities in central Africa. I think the challenge is to find the right entry point ... the right partner, but we haven't found any that work for us up to now." Xstrata is the world's fifth-largest mining group by market capitalisation, eyeing on expanding its range of metals as there are notable gap in its portfolio, which aluminium and iron ore among them. Speculation from the media and analysts has said Xstrata may be interested in bidding for U.S. aluminium giant Alcoa Inc, but Sawyer said he would not comment on specific companies Xstrata may be interested in. COPYRIGHT All rights reserved. The copying, republication or redistribution of WAM News Content, including by framing or similar means, is expressly prohibited without the prior written consent of WAM.