Xstrata ready for long WMC battle
LONDON-LISTED mining group Xstrata may face Australian government opposition to its proposed takeover of WMC Resources, the country's last remaining major independent miner.
WMC last week rejected overtures from Xstrata, which put a A$7.4bn (£2.9bn) offer on the table, but the battle is far from over with Xstrata chief executive Mick Davis reportedly digging in for the long haul.
WMC owns the Olympic Dam project in outback South Australia - the world's eighth-largest known copper deposit but also the world's largest uranium find. WMC is also the third-biggest nickel producer in the world through its Western Australian properties.
Reports in Australia say Davis is preparing for a long-term campaign similar to the one that helped win him control of MIM Holdings last year in the face of strong opposition.
Rivals Rio Tinto and BHP Billiton are yet to declare their hand in the bidding for WMC.
The most serious challenge to Xstrata's bid is thought to come from the government, which could deem the uranium deposit significant enough to Australia's national interest to hold on to.
