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Sunday, January 9, 2011

Xstrata near to buying Colombian coal miner-paper, (XTA), (VED)

London-listed miner Xstrata (XTA.L) is close to winning the $8 billion auction for Colombia's second-biggest coal miner, British newspaper The Sunday Times said, without citing sources. The newspaper said Xstrata was the only suitor to table a fully-financed offer for the business, which is being sold by family-owned U.S. group Drummond [DRMND.UL], by last month's deadline. Bank of America-Merrill Lynch, which is running the auction, extended the timeframe to allow other bidders including London-listed Vedanta Resources (VED.L) and India's Essar Global more time to arrange financing, the paper said. However, they have struggled to do so, putting Xstrata in pole position to secure a deal, it added.