Mining giant Rio Tinto
The newspaper said the agreement has been in place since Rio announced its full-year results in February. However, Rio will only use the rights issue option if its controversial $19.5 billion deal with China's state-owned Chinalco falls through.
Under the terms of that deal, Chinalco will take an 18 percent stake in Rio and a significant interest in strategic mining assets. The deal has met with resistance from some British investors and the Sunday Times reported that an alternative fundraising plan is in place.
Rio Tinto could not be reached for comment on the report.
Separately, The Financial Times reported that Rio Tinto is ready to proceed with a rights issue of about $10 billion if its tie-up with Chinalco falls through.
Chinalco could extend a planned convertible bond to UK investors if deemed necessary by Rio's board, the FT said, citing a person familiar with Chinalco's thinking.
Rio remains committed to the Chinalco deal, but that could be blocked by regulators or vetoed by shareholders, the FT said.
Meanwhile, the Sunday Telegraph reported that mining group Anglo American
The newspaper said Anglo has appointed the headhunting firm Spencer Stuart/Zygos to the role.
(Reporting by Matt Scuffham, additional reporting by Megan Davies in New York; editing by Ian Geoghegan)