Metal Miners are Fighting for Attention

As Rio Tinto PLC (RTP) outlined its growth strategy and takeover defence on Monday morning, other major miners were putting out announcements themselves as investors focus on the sector.

Roger Agnelli, chief executive of Brazil's CVRD (RIO), said the company does not plan to invest in Rio Tinto - even though CVRD made a failed bid for Alcan Inc. (AL) earlier this year. Mr. Agnelli also said CVRD plans to spend $10-billion to expand iron ore mining in the Amazon, and forecasted global demand for copper of 4.1% a year through 2009.

Meanwhile, Xstrata PLC (XSRAF.PK) is putting together a plan to potentially more than double molybdenum processing capacity at its Altonorte facility in Chile. Xstrata has also made its takeover offer of Australia Jubilee Mines NL unconditional after having trouble getting shareholders to tender their stock. Xstrata now says it will proceed with the takeover with just 50% of the shares, down from its initial plan of 90%.