It is reported that Rio Tinto is prepared to consider approaches from China after it was reported that the country's largest steelmaker was planning an offer that could value Rio at more than USD 200 billion.

Mr Tom Albanese CEO of Rio recently said that the company was listening but not engaged in talks with the Chinese government and steelmakers who are the largest customers for Rio's Australian iron ore mines.

As per reports, Rio is understood to have softened its position and is now prepared to talk if a formal offer at a large enough price is forthcoming.

Mr Xu Lejiang president of Baosteel was quoted by a state run newspaper as saying that "I am afraid USD 200 billion would not be enough." Mr Lejiang was also cited as saying "We are still studying the plan and are discussing how to launch a bid. If you ask how strong the possibility is, it is quite strong. But, of course, there are other possible responses as well."