It is reported that Brazilian mining giant and world’s biggest producer of iron ore CVRD sees a possible takeover of rival Rio Tinto by world's biggest miner BHP Billiton as a good thing for the industry that will not threaten CVRD's dominance in the iron ore market.

Mr Roger Agnelli CEO of CVRD told reporters that CVRD would only follow the negotiations from far and that it is now interested in organic production growth rather than acquisitions after buying Canada's Inco last year.

He said “The merger of BHP with Rio Tinto would be positive for the mining industry. It would strengthen all the industry, we are going through a process of concentration. World economic growth meant companies needed every time bigger scale to meet the market's needs. "Even with this merger, CVRD remains the market leader in iron ore, while in nickel it has a good position and growth prospects.”

Analysts have generally ruled out any chance for CVRD's rival bid for Rio Tinto, although some said it could team up with BHP to present a joint bid. But Mr Agnelli's comments seemed to dismiss such theories.