BHP (NYSE:BHP), Rio Tinto (NYSE:RIO), Xstrata, Looking For Better Deals in Obscure Regions

BHP Billiton Ltd. (NYSE:BHP), Rio Tinto Group (NYSE:RIO) and Xstrata Plc have been expanding their search for new deals by focusing on more obscure regions for acquisition, in light of the high commodity prices and valuations of companies.

They are particularly looking for emerging markets as their next growth target.

Mining acquisitions have soared in 2010, rising to about $132 billion. Miners have had to pay on average a 23 percent premium under the strong market conditions.

That was about double what companies located in Africa, the Middle East and Latin America went for.

Companies with strong exposure to gold, copper and coal are the more desirable candidates to be acquired, according to Sanford C. Bernstein & Co.

More important companies named as takeover targets are Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) and Ivanhoe Mines Ltd. (NYSE:IVN).

They have a strong presence in emerging markets, but they definitely wouldn't come cheap in the commodity environment we're now in, somewhat going against the grain of the overall acquisition strategy.

Ivanhoe especially has some extraordinary upside, and are considered to be one of the leading candidates to become one of the top miners in the world, based on their Mongolian assets.

With the soaring commodity prices, large-cap miners are flush with cash and looking for new revenue streams to push out revenue far into the future.