Rio Tinto: No decision on BHP Billiton deal

Mining group Rio Tinto says it has made no decision on its planned US$116 billion ($155 billion) Australian joint venture with BHP Billiton, after a report said the deal could be terminated.

"The Rio Tinto board has not made any final decisions about possible outcomes or next steps relating to the proposed Rio Tinto/BHP Billiton iron ore production joint venture in Western Australia," Rio said.

The Sydney Morning Herald said Rio was preparing to walk away from the deal and cited sources close to the Rio board.

"The major reasons for Rio's decision appear to be its improving financial fortunes, pressure from shareholders and the conclusion that the deal favoured BHP," the paper's website said.

Rio said the BHP deal had been discussed at a board meeting on October 4.

"The board acknowledged recent communications from regulators that indicate potential obstacles to achieving clearance for the joint venture," Rio said.