A spurned bid approach by BHP Billiton for Rio Tinto is likely to accelerate consolidation in the mining sector as rivals are spurred into action as rival diversified mining companies such as Anglo American Plc, Xstrata Plc and CVRD might be tempted forge new partnerships to keep from being swallowed up.

Shares of mining companies have surged after BHP Billiton proposed paying three of its shares for each Rio share.

An analyst said that "I think what this does, is it throws everything wide open again. Anglo, Xstrata, Lonmin, Alcoa, Freeport, anything that has a decent size and decent set of assets is potentially on the blocks."