Teck Resources Limited, Canada’s second largest mining company, is losing interest in buying Rio Tinto Plc’s controlling stake in Iron Ore Company of Canada after failing to agree on a price.

While Teck is still officially participating in the auction process for the asset, the Canadian company and London based Rio are far apart on a valuation and aren’t moving closer.

Credit Suisse Group AG analysts said that in light of the rising price of iron ore, which has climbed as much as 29% since the end of May as Chinese steel demand recovers, Rio may opt to keep its interest in Iron Ore Company. Rio’s 59% stake in the unit may be valued at as much as CAD 3.5 billion.

Rio and other large mining companies such as BHP Billiton Limited and Anglo American Plc are looking to sell some of their less promising assets as the sluggish global economy slows demand growth for iron ore, copper and other commodities.

Mr Sam Walsh CEO of Rio Tinto said that “A planned sale of Australian and New Zealand aluminum businesses for value is not possible in the current environment. In June, Rio said it backed away from selling its diamond business after failing to find a buyer and deciding not to pursue an initial public offering of the unit.”