iron ore....rio ups value of iron ore deposit.

so does FDL!

Rio Tinto ups value of WA iron ore deposit


Tom Albanese, chief executive of Rio Tinto.

Rio Tinto, headed by Tom Albanese, says its iron ore resource base in Western Australia has increased by 3 billion tonnes (file photo) (Reuters: Christinne Muschi)

* Related Story: Rio rejects BHP's takeover bid

Takeover target Rio Tinto has announced its iron ore resource base in Western Australia has increased by 3 billion tonnes.

The move could be interpreted as designed to put more pressure on BHP Billiton to increase its bid for the company.

Overnight, Rio rejected BHP's improved offer, saying it significantly undervalued the company.

But Rio has left the door open for a higher proposal.

The investment director of 452 Capital, Peter Morgan, says the deal will be a long, drawn-out process.

"There's still a lot of water to flow under the bridge with regards to both companies, and the outside interests from China and Alcoa," he said.

"But perhaps more importantly, there's still a lot of water to flow under the bridge with regards to the global investing environment."

Tags: business-economics-and-finance, company-news, industry, mining, takeovers, iron-ore, australia, wa