Rio Tinto Plc (RIO), which continues to lift its stake in bid target Riversdale Mining Ltd. (RIV.AU), said Friday it has begun the search to replenish its board as several directors, including former British Airways Plc Chief Executive Rod Eddington, prepare to retire.

The U.K.-headquartered company said non-executive directors Eddington and Yves Fortier will retire from the board after the annual shareholders meeting May 5, and independent director Andrew Gould will serve another year before retiring after the 2012 meeting.

It said it was specifically looking for an Australian to succeed Eddington, who headed British Airways until 2005 and was previously managing director of Cathay Pacific Airways Ltd. (0293.HK).

Fortier was ambassador and permanent representative of Canada to the United Nations from 1988 to 1992 and chairman of Alcan Inc. until the Canadian aluminum producer was acquired by Rio Tinto in 2007 in a $38 billion deal.

"I am most grateful to Yves for his tremendous support during an important transition period for Rio Tinto following the Alcan acquisition," Rio Tinto Chairman Jan du Plessis said in a statement. "I would also like to thank Rod for his significant contribution and the Australian perspective that he has brought to the boards since 2005."

Separately, the Anglo-Australian mining company said Friday its interest in Riversdale had risen to 18.7% after being nudged up to just shy of 17% earlier in the week, and one person familiar with its A$3.9 billion bid for the Africa-focused coal company said discussions with the two largest shareholders in Riversdale are ongoing. Tata Steel Ltd. (500470.BY) of India and Cia. Siderurgica Nacional (SID) of Brazil now hold 47% of Riversdale between them, giving them a greater say in how the bid progresses.

Two other people familiar with the companies involved, who also declined to be named, have said Tata and CSN are likely holding out for a raised offer from Rio Tinto and are positioning themselves to ensure they maximize access to coking coal, a key ingredient in steelmaking.

A spokesman for Rio Tinto declined to comment on the bid.

Rio Tinto in December made a recommended cash offer for Riversdale at A$16 a share and said it had secured acceptances for about 14.9% of Riversdale's shares. It has twice extended the deadline for its offer, last week pushing it out to March 18, and it can continue to move the date if it chooses to.

Riversdale operates a colliery in South Africa and is developing two major coal projects in neighboring Mozambique in an area that is attracting interest from mining and steel companies from around the world.

Tata Steel earlier this week said it had raised its stake in Riversdale 2.9 percentage points to 27.1%. CSN has also raised its stake, in February taking it to 19.9%. Listing rules prevent either from increasing their holdings further for six months.

Spokesmen for Riversdale and Tata both declined to comment when contacted. Riversdale has said its directors have all recommended Rio Tinto's offer "in the absence of a superior proposal", including director N.K. Misra who also is head of mergers and acquisitions at Tata.

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com
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