Rio Tinto has scrapped plans to divest its Australia-based Northparkes copper and gold mine following a rise in copper prices.

The company told Bloomberg the copper and gold mine has been eliminated from the list of assets that are being considered for sale.

Copper prices have more than doubled this year due to indications of global economic recovery and increase in Chinese imports.

In September, Rio resumed expansion work on the mine after suspending activities in January because of the fall in copper prices and the global economic downturn.

Rio holds a 80% stake in the mine, while Sumitomo and Sumitomo Metal Mining Oceania hold the remaining.

The Australian Financial Review said the company was seeking $621m for its share.