xstrata moving to be lead counter-bidder

Xstrata look to have ditched plans to bid for Lonmin, so it's reported in the UK and Switzerland. They have raised plenty of funds from their big rights issue to strengthen their balance sheet.

Xstrata and Felix Resources are starting to move together more with their Ulan mine and Felix's Moolarben future mine, by sharing resources. If Xstrata were able to bring their longwall mine together with Felix's then cost saving would be high.

Felix have strong growth prospects beyonf Moolarben with the Athena tenement likely to produce as much coal as Moolarben and the Wilpeena Tenement ready to deliver more PCI coal North of the Yarrabbee mine.

Xstrata need renewed growth and a counter-bid by them for Felix Resources looks back on the cards again.