South32 Studies Bid for $1.6 Billion Rio Coal Portfolio

South32 Ltd. is studying a potential bid for Rio Tinto Group’s A$2 billion ($1.6 billion) coking coal portfolio, people familiar with the matter said, as it seeks to take advantage of surging prices for the steelmaking ingredient.

The Perth-based company is working with an adviser as it weighs an offer for Rio Tinto’s Hail Creek and Kestrel mines in Australia, according to the people. It could face competition from suitors including Whitehaven Coal Ltd., which is also considering a bid, the people said, asking not to be identified because the information is private.