Daily Mail, citing sources close to the situation, reported that Xstrata and Rio Tinto have both tabled bids of about GBP 5 billion for the Colombian assets of America's Drummond Coal.

The miners are thought to have made the bids in time for the second round deadline earlier this month, set by Drummond's adviser, Bank of America Merrill Lynch.

The auction of the assets, including a mine, railway and port facilities, is understood to have drawn a handful of miners, including Brazil's Vale, as well as Peabody of the US. It is not known which of these has tabled second round bids for the assets.

Alabama based Drummond, led by CEO Mr Garry Drummond, is thought to have walked away from three previous rounds of takeover talks after failing to secure the right price.

Xstrata, the world's largest coal exporter, is thought to be the most interested. It already partly owns Colombia's Cerrejon mine and Prodeco coal mining complex through commodities trader Glencore, which owns 34% of the miner.

(Sourced from dailymail.co.uk)