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wafa3on Feb 11, 2011 9:31am
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Rio Tinto may get into Potash Corp.'s game
Rio Tinto may get into Potash Corp.'s gameGlobe says Rio Tinto may get into Potash Corp.'s game
2011-02-11 08:30 ET - In the News
The Globe and Mail reportsin its Friday edition that during the heated takeover battle for PotashCorp. of Saskatchewan, Rio Tinto chief executive officer Tom Albanesesuggested he was not readying a rival bid because he is "not a farmer,I'm a miner."The Globe's Brenda Bouw writes that now it seems Mr. Albanese wants tobe a farmer after all.Two years after selling Rio's undeveloped potash assets to Vale SA for$850-million (U.S.) to help pay down debt, Mr. Albanese is hoping to getback into the fertilizer business."We did sell [potash assets] in the financial crisis. Everyone said wegot good value from that, so no regrets on that. But I have said to ourgeologists, 'I still like potash, find me some more,'" Mr. Albanese toldThe Globe on Thursday.Rio's potential return to potash comes amid rising prices for thefertilizer ingredient as a result of soaring demand from farmers lookingto cash in on higher returns for their crops. BHP Billiton's$38.6-billion (U.S.) bid for Potash Corp. was too rich for Rio to takeon, Mr. Albanese said. "We've said all through the course of 2010 we arefocusing on small- to medium-sized transactions and PCS wouldn't havebeen in that category."