Rio mulls bid for uranium explorer Xemplar Energy

LONDON - BHP Billiton's takeover target Rio Tinto is believed to be considering making its own bid for Canadian uranium explorer Xemplar Energy.

The Anglo-Australian miner is reported to have become interested in Xemplar after it revealed it had found what is believed to be one of the world's biggest uranium deposits in Namibia. Xemplar is waiting for independent verification of its discovery.

"Rio is understood to be watching events carefully and will decide on whether or not it will make a move for the firm after the results come in," the Sunday Express newspaper in Britain said.

Rio has stakes in two uranium mines, one in the Northern Territory and another in Namibia.

Rio's interest in Xemplar comes after its fellow Anglo-Australian mining giant BHP Billiton made an informal £67 billion ($173 billion) takeover offer for its global mining operations.

Rio rejected BHP's offer, saying it was too low.

- AAP