Anglo American is talking to other mining companies and investors to take a stake in its recent acquisition, MMX Minas-Rio, as it prepares to shore up its defenses, should Swiss miner Xstrata's $68 billion equal merger proposal that it recently rebuffed, (See: Anglo American rejects Xstrata's $68-billion deal)  turn hostile.

London-based Anglo American, a global leader in mining with diverse mining assets, is seeking to sell 30 per cent of MMX Minas-Rio and MMX Amapá iron ore projects, the Brazilian iron ore producer it acquired in January 2008 for $5.5 billion.

Anglo American is reported to be talking with Dubai Natural Resources World, Bahrain-based Gulf Industrial Investment Co, Sojitz, the diversified Japanese conglomerate and the Chinese state-owned metals group Chinalco, to sell its 30 per cent stake or co-develop the Brazilian iron ore mines, which require an investment of about $3.6 billion.

According to media reports, citing people close to the situation, the negotiations are at an early stage and there is no certainty that a deal will be reached.

By selling a 30 per cent stake, Anglo American will be able to reduce a part of its $11 billion debt, accrued mainly due to the overpriced, height-of-the-commodities-boom acquisition of MMX Minas, an acquisition, which has been criticised by Anglo investors in the past.

Last week, Xstrata had sent a $68 billion equal merger proposal to Anglo American to become one of the world's leading mining and natural resources company, (See: Xstrata proposes $68 billion merger deal with Anglo American)  but Anglo, convinced that it is better off as an independent company and its assets are far more valuable than that of Xstrata's, had rejected the equal merger proposal outright.

The South African government, Anglo's largest shareholder, which owns a 5-per cent stake through its Public Investment Corporation of South Africa, had called both the miners for discussions last week and is reported to be scrutinising Xstrata's proposal, which it released in detail last week.

To ramp up the pressure on Anglo, the Swiss miner made public its nil-premium merger proposal in detail last week, where it said that the merger would bring cost savings of $1 billion annually and there was no need of a premium to be offered since it was not a takeover but a proposal of an equal merger.

South Africa's National Union of Mineworkers (NUM) with 317,000 members, fearing job losses if the merger takes place, has opposed the deal despite Xstrata's CEO Mick Davis assuring that mining jobs in South Africa would be safe should the merger go through.

Anglo, which had offered Sir John Parker the post of chairman of Anglo last year to replace the outgoing chairman Sir Mark Moody-Stuart, is also reported to be looking at Jim Leng, for the chairman's post.

Jim Leng, the former chairman of Europe's steel giant Corus, who was later appointed as chairman of Anglo Australian miner Rio Tinto, had resigned from the board in February after having been named to the job less than a month ago, due to differences in the board on the route the company should take to reduce its huge debt of $38.9 billion. (See: Corus chairman quits Rio Tinto's board; rules out joining it)

Incidentally, Chinalco is one of the investors that Anglo is talking to for investing in its Brazilian iron ore assets. If Jim Leng is appointed as the chairman of Anglo, it may raise the shackles of the Chinese company as he had vehemently opposed its investment in Rio Tinto, a deal, which was a vindication to Jim Leng's opposition as Rio Tinto finally rejected Chinalco's investment. (See: Rio terminates Chinalco deal; to raise $15.2 billion through rights issue)

National Grid chairman Sir John Parker is the other candidate whose name is also doing the rounds for the chairmanship of Anglo.