a hint regarding xstrata ambitions

Posted on Reuters this evening - interview with X-strata execs. The main body went on about sustained demand from china underpinning prices - then at the end of the article this little gem..

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"ACQUISITION ENVIRONMENT DIFFICULT"

Expanding copper resources by mergers or acquisitions has become more difficult now, Xstrata Copper chief executive Charles Sartain said.

"They (acquisitions) are more difficult in this stage of the cycle. Many companies are 'cashed up' and we have to ensure that any potential acquisitions fit," Sartain said.

However, he identified the SX-EW (solvent extraction-electrowon) area as a possible target. SX-EW production cash costs are usually lower than traditional smelting.

"We want to be more involved there...we are missing an opportunity if we don't get into that."

Custom-smelting, meanwhile, is a difficult business, and Xstrata is not particularly interested in this sector.

"We are not looking to buy smelters to integrate," Sartain said
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Now if Im not completely mistaken this would put OXR right in the cross hairs.