The global mining industry could face a wave of mergers after the move by BHP Billiton to take over Rio Tinto, the head of Xstrata predicted yesterday.

Mick Davis, chief executive of the Swiss-based, London-listed group, said that although it was not guaranteed that the bid for Rio would be successful, “it certainly, I think, has created another dynamic and momentum for consolidation in the industry”.

As market speculation pitches Xstrata with Anglo American, Mr Davis said: “I think we are the most perfectly positioned company in the industry, the company which is going to benefit from consolidation in any way that it actually transpires.”

Mr Davis made his remarks as Xstrata made a A$960 million (£413 million) bid for Resource Pacific, the Australian coalmining group. The cash offer exceeds an all-share offer from New Hope.

Xstrata, which has been highly acquisitive recently, is moving on Resource Pacific in an attempt to strengthen its position in Australia’s surging natural resources sector. Xstrata is offering A$2.85 a share, compared with New Hope’s offer of 0.94 of its own shares for each Resource Pacific share, which equates to A$2.30.

Credit Suisse added to the expectation of more mining mergers yesterday when it advised investors to hold on to both Xstrata and Anglo American shares because of the chance that one might bid for the other.

The broker said that a takeover of Xstrata by Anglo American would make the most sense. A research note said: “If Anglo were to offer £40 per share for Xstrata in a 50-50 cash-and-share offer, we estimate it could be 13 per cent accretive to their 2008 earnings per share and would increase their gearing from 18 per cent to 57 per cent.

“But if Xstrata offered £40 per share for Anglo on the same terms, it would be 7 per cent dilutive for Xstrata shareholders, unless platinum prices outperformed.”

Xstrata shares closed up 138p at £34.58, while Anglo American’s rose 155p to £32.73.

Xstrata said that it was keen to secure a deal to buy Resource Pacific quickly. Peter Coates, head of the coal division, said: “We have tried to put a price on the table so that we can finish this quickly.” New Hope said that it was reviewing its options.

The company also said that it aimed to double its production of copper over the next five years.

Xstrata is already the world’s fourth-largest copper producer and a doubling of its output will take it to two million tonnes a year. It aims to double output through a mixture of adding mines and expanding operations at its existing facilities.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive