BHP, Rio, brace for rejection

Anglo-Australian mining giants Rio Tinto and BHP Billiton have voiced disappointment with what they say is the expected rejection by German regulators of their plan to combine iron ore operations in Western Australia.

They say the German regulatory examination is continuing, with formal notification expected next week.

German cartel officials could not be reached for comment, but the German newspaper Handelsblatt says the office has told the companies the proposal will be rejected in its present form.

BHP and Rio, the world's second and third largest iron ore miners, want to combine their operations in a 50-50 joint venture in the Pilbara region of Western Australia.