Swiss-based miner Xstrata PLC, which bought Sudbury, Ont.-based nickel giant Falconbridge in 2006, confirmed Wednesday that it's in the early stages of "consolidation" talks.

"Xstrata confirms that its ongoing interaction with other
industry participants includes dialogue with a number of parties
covering a range of topics of mutual interest, such as industry
consolidation," the company said in a statement. 

"None of these very preliminary discussions have resulted in any proposal being made."

The Financial Times reported last week that Brazilian-based CVRD had hired bankers to explore making an offer for Xstrata. CVRD, which is the world's largest iron ore producer, bought Sudbury's other nickel giant, Inco, for $19 billion last year. 

Another possible suitor that has been mentioned is Anglo American PLC.

Xstrata shares have surged 30 per cent in the last three weeks as rumours swirled that the Swiss company might be part of yet another consolidation in the mining sector.

In early November, the world's largest mining group, BHP Billiton, revealed that it was mounting a hostile, $130-billion US takeover attempt of Anglo-Australian mining giant Rio Tinto — the company that acquired Alcan earlier this year.

It was the news of that takeover attempt that sparked the latest round of media and analyst speculation about mining mergers and acquisitions.   

Xstrata is 35 per cent owned by Glencore International, a Swiss-based commodity trading firm.