THE mining industry has been on the lips of economic forecasters and shareholders this week, as BHP Billiton revealed it wants to buy Rio Tinto.
The massive company formed from such a deal would be worth around $400 billion.
Rio Tinto has rejected the deal, said to be worth over $100 million, on the grounds that it undervalues the company.
The two companies control more than one-third of the world’s iron ore, with significant interests in the Pilbara region of Western Australia.
A merged BHP-Rio would also produce about 38% of the world’s coking coal, and 14% of its thermal coal.
Any deal struck by the two companies would most likely raise the attentions of the Australian Competition and Consumer Commission.