Reports published in a Canadian newspaper on Tuesday have indicated that giant mining firm Rio Tinto Ltd is seriously mulling a takeover bid for PotashCorp of Saskatchewan, with a Chinese partner in tow.

The Canadian daily Globe & Mail reported on its online version that Rio Tinto is considering in forwarding a bid though it did not name the source of its information.

The new came out following the $40 billion or $A44.98 billion hostile bid from BHP Billiton Ltd, which is targeting the world's largest producer of fertiliser in preparation for the expected higher demands for potash as countries aimed to boost their agricultural outputs.

Globe & Mail said that considering that rich promise of bolstered agricultural activities, Rio Tinto may be tempted to woo the Canadian company, with a little help from a Chinese company though the newspaper noted that the Canadian government may block the deal fro security reasons.

However, Rio Tinto chief executive Tom Albanese downplayed the suggestions of takeover as he declared in a China gathering that he is mainly a miner and not a farmer.

Mr Albanese clarified though that he would be interested in considering the option if and when the right resources were thrown in at the company's disposal.

Pengana Capital fund manager Tim Schroeders agreed that Rio Tinto may not be that interested in acquiring PotashCorp as he reminded that the company even sold off an undeveloped potash interests it once owned in Argentina.

Mr Schroeders said that the market would be surprised once the takeover would even be initiated, judging from the disinterest shown by Mr Albanese.