Teck Resources Limited, Canada’s second biggest mining company is among the remaining bidders for Rio Tinto Group’s controlling stake in Iron Ore Company of Canada.

The person said that Rio Tinto may decide to keep its Iron Ore Company stake after being disappointed with the bids it’s received so far. While London based Rio has considered selling the unit’s mining and infrastructure assets separately, it decided against the plan.

Credit Suisse Group AG analysts said recently that buying Canada’s largest iron ore producer would enable Vancouver based Teck to diversify its production which mostly comprises coal, copper and zinc. Rio’s 59% stake in Iron Ore Company may fetch as much as USD 3.5 billion.

An acquisition that size would be Teck’s largest since its CAD 10.4 billion purchase of Fording Canadian Coal Trust in 2008 a deal completed just as commodity prices were beginning to plunge during the financial crisis. In 2009, Teck’s credit rating was cut to junk by Standard & Poor’s and the company sold a 17% stake to China Investment Corporation.

Mr Don Lindsay CEO of Teck said that the company now has a very strong balance sheet and would like to keep it that way. We do look at opportunities in the market. If Teck found a potential acquisition we’d look at how to finance it at that stage but always with the key criteria that we are staying investment grade.