Minmetals May Seek to Top Xstrat Bid for Sphere , Financial Review Reports

BEIJING, Sep. 2 -- China Minmetals Corp., the nation’s largest metals trader, may seek to top Xstrata Plc’s A$428 million ($389 million) agreed bid for iron ore developer Sphere Minerals Ltd., the Australian Financial Review reported, citing market talk.

Minerals & Metals Group, the company’s Australian unit, and its parent China Minmetals Nonferrous Metals Co. “knows nothing about” the bid, Melbourne-based spokesman Bruce Loveday said by telephone today. “That’s not to say the ferrous side of the business may, or may not be involved,” he said.

China Minmetals Corp. last year agreed to spend $1.39 billion to acquire zinc, copper, gold and nickel assets from OZ Minerals Ltd. Xstrata has offered A$2.50 a share, Perth-based Sphere said Aug. 24, recommending the bid to its shareholders. Sphere has three iron ore projects in Mauritania, West Africa, including half of the $1.65 billion Guelb el Aouj development.

Warrick Hazeldine, a Perth-based spokesman for Sphere wasn’t immediately available for comment.

China Minmetals was in April reported to be studying iron ore projects in Mauritania, the newspaper reported in its Street Talk column today, without saying where it got the information.

Sphere shares rose 3.6 percent to A$2.59 at 10:09 a.m. Sydney time on the Australian stock exchange.