/ 26 March 2001

RIO UNSURPRISED BY BHP DEAL

GLOBAL mining giant Rio Tinto says the US$28bn merger deal between BHP and Billiton comes as no surprise, with more rationalisation in the metals sector likely. Rio chief executive Leigh Clifford said Rio had not been involved in any discussions over Billiton, and while alert to acquisitions, the company was more concerned with bedding down its 2000 purchases, such as iron ore miner North Ltd and diamond miner Ashton Mining Ltd. “Our focus at the moment is making those US$4bn worth of acquisitions return performance,” he said. Clifford also dismissed the chances of Rio and Anglo American Plc embarking on a BHP/Billiton style merger. – Reuters