India's Vedanta Resources (LON:VED) will not pursue an acquisition of Rio Tinto's (NYSE:RIO) Canadian iron-ore project, a person familiar with the company told The Wall Street Journal on Tuesday.
Financial considerations motivated the decision, the source said.
Since March, Rio Tinto – Canada's largest iron ore producer – has been trying to sell its 59% interest in Iron Ore Co. of Canada which operates a single mine in the Carol Lake region of Newfoundland. The move is part of a broader company strategy to cut $5 billion of its global expenses over the next two years.
China Minmetals Corp has shown strong interest in the $4 billion iron-ore operations.
Other potential buyers include Glencore Xstrata (LON:GLEN) and Blackstone Group (NYSE:BX).
Creative Commons image by: Peter Craven