The North board has indicated it will unanimously recommend this bid to its shareholders.

North’s joint venture partners in Robe River Iron Ore Associates, Mitsui, Nippon Steel Corporation and Sumitomo Metal Industries, have also indicated their strong support for Anglo American’s bid.

Rio Tinto said in a statement that it had noted Anglo American's counter bid for North and would respond in due course.

North shares immediately jumped 31c, or 7.79%, to $4.29 after a trading halt against the securities was lifted following Anglo American’s announcement.

The directors of North requested this morning that the Australian Stock Exchange halt trading of its stock for the day, but the ASX declined.

North had intended to lodge its target statement and independent expert’s report in response to the Rio Tinto takeover offer with the ASX early today. However, the company said that following Anglo American’s counter bid and negotiations and agreements between North and the South African mining giant overnight, it will not be possible to amend and lodge the documents before Monday.

The Anglo American offer amounts to $4.20 per share in cash. North said in a statement that prior to the closing of the offer it will declare and pay a fully franked dividend of 5c per share to existing shareholders.

For the fiscal year ended 30 June, 2000, North reported attributable losses of $26 million after abnormal charges of $141 million. For the nine months ended 31 March, 2000, the company reported attributable profits of $372 million following abnormal profits of $270 million.

North reported net assets of $2.1 billion as at 31 December, 1999.