The group said in a statement it was offering one Australian dollar per share, which it said was 28 percent higher than the scrip's closing value the previous day.

Xstrata, which has interests in copper, coal, ferrochrome, nickel, zinc, gold, cobalt, lead and silver, also said it was in talks with Lion Selection, which holds a 17.76 percent stake in Indophil.

‘Provided the conditions in the pre-bid acceptance agreement are met, Lion Selection will accept Xstrata's offer in respect of these shares,’ the statement said.

‘This agreement increases Xstrata's relevant interest in Indophil's shares to 19.99 percent.’

Xstrata Copper chief executive Charlie Sartain said: ‘This offer represents a highly attractive premium to Indophil's current share price.