China's Shenhua among potential bidders for Rio's coal business - report

SYDNEY, Aug 14 (Reuters) - China's Shenhua Group is among six parties assessing bids for Rio Tinto (LSE: RIO.L - news) 's $4 billion thermal coal business, the Australian Financial Review reported on Friday.

The interest from Shenhua, coal miner New Hope Corp Ltd and an unnamed specialist mining private equity firm broadens what had been expected to be a two-horse race for Rio's thermal coal assets between Glencore Plc (Xetra: A1JAGV - news) and London-based X2 Resources.

The reported interest from Shenhua comes just weeks after Australian Environment Minister Greg Hunt said he would review the government's approval for China Shenhua Energy Co's $1 billion Watermark thermal and soft coking coal project.

Hunt announced the surprise review under pressure from agricultural groups who are angry the mine in eastern Australia is in prime farmland.

The smaller New Hope is interested in only part of the Rio business, the AFR said, citing unnamed sources.

Rio last year rejected a takeover approach from smaller rival Glencore, snubbing a blockbuster deal that would have created a $160 billion mining and commodities trading giant.

A Shenhua spokeswoman was not immediately available for comment, while the other companies could not be reached.

($1 = 1.3578 Australian dollars) (Reporting By Jane Wardell; Editing by Richard Pullin)