Xstrata admits tie-up talks held

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The mining group Xstrata has confirmed that it held merger talks, but that no agreements have been reached yet.

It came as the world's largest miner, BHP Billiton, said it would continue to seek takeover talks with Rio Tinto.

Xstrata shares have risen about 30% in the last three weeks on hopes of consolidation in the mining industry, but fell 1% after the announcement.

Xstrata has used acquisitions in the last decade to grow into the world's sixth-biggest mining group.

It is particularly active in copper, coal, nickel, vanadium and zinc.

Xstrata did not name any of the parties to which it had been speaking, although newspaper reports have linked the Anglo-Swiss group with Vale and Anglo American.

"Xstrata confirms that its ongoing interaction with other industry participants includes dialogue with a number of parties covering a range of topics of mutual interest, such as industry consolidation," it said in a statement to the London Stock Exchange.

"None of these very preliminary discussions have resulted in any proposal being made either for or by Xstrata and there can be no certainty that any such proposal will result," it added.