Feb. 8 (Bloomberg) -- BHP Billiton Ltd., the world’s largest mining company, may seek to acquire mines and plants from any distressed sellers and said some of Rio Tinto Group’s would fit well into its portfolio.

BHP has stable cash flows and a strong balance sheet and is keen to acquire “tier one” assets that may become available, Chief Executive Officer Marius Kloppers said today. Rio’s 30 percent stake in Chile’s Escondida copper mine would fit “tremendously well,” he said, declining to say whether BHP has made an approach.

“On any individual negotiation, as a lot of these things are going on, I just can’t comment,” Kloppers told the Australian Broadcasting Corp.’s Inside Business program today.

BHP, which last week booked a $386 million charge for its failed takeover bid for Rio, has joined Xstrata Plc and Rio in closing mines and cutting jobs as the global recession cuts demand. With less than 10 percent of its assets funded with debt, the company can be “very competitive” in bidding for any assets coming to market that fit its strategy, Kloppers said.

BHP owns 57.5 percent of Minera Escondida Ltd., operator of the world’s largest copper mine, in partnership with Rio and a group of investors led by Mitsubishi Corp.

Rio rejected a $66 billion takeover offer from BHP last year and is in talks with parties including Aluminum Corp. of China and Amcor Ltd. on asset sales as it seeks to reduce debt.

A cash bid for Rio is “probably not possible” given U.K. takeover rules and the cooling off period BHP had indicated when its earlier offer lapsed, Kloppers said.

Still, companies in several parts of the market are coming under financial stress and will need to sell assets to meet short- term needs, Kloppers said.

“Look at the industry at large,” he said. “We’ve got a lot of leveraged companies.”

To contact the reporter on this story: Gavin Evans in Wellington at gavinevans@bloomberg.net

Last Updated: February 8, 2009 01:20 EST