As per industry experts in investment circles any merger between BHP Billiton and Rio Tinto will spark similar moves among smaller resources companies in Australia.

Mr Kim Jacobs CEO of Inteq said that if the deal goes ahead smaller miners will follow BHP's lead. He said "I think you are going to find the small to medium sized players are going to be looking for strategic acquisitions and or mergers that can then make them attractive to institutions and larger players in the market.”