Canadian mining firm Teck Cominco has launched a takeover move that could see it become a significant producer of platinum and other metals.

It has announced that it is pursuing an offer for the fellow-Canadian company Inco.

The bid has caused some controversy, however, as the offer is dependent upon Inco ceasing its friendly bid for the US copper and nickel producer, Falconbridge.

"We are surprised that Teck Cominco has taken this step to interfere in our transaction and will review the implications of what they have done," commented Derek Pannell, Falconbridge's chief executive.

If successful, the newly formed company would also become the world's largest zinc miner and indium producer, a metal used in flat screen television production.

Speaking at a news conference, Teck chairman Norman Keevil said: "The combined company that will result from completion of our bid will be a true world leader, operating worldwide but with its roots firmly in Canada, from Newfoundland through Ontario to the west coast."

The bid comes despite Inco's recent announcement that pgm production had fallen during the first quarter of 2006. Production of pgms fell to 89,000 troy ounces during the first three months of this year, compared to 108,000 troy ounces produced in the same period in 2005.

Ÿ Adfero Ltd