Sustained high prices were also expected, accompanied with higher expected growth rates, increased cash generation potential and lower market risk. "We will have a good cost position and margins over the coming decades, not just years," indicated Rio Tinto CFO Guy Elliot.

Rio Tinto is defending itself against a hostile takeover bid from the world's biggest mining group, BHP Billiton. Rio Tinto says that BHP's 3,4 for one share offer undervalues the company, and the group's executive management, led by CEO Tom Albanese, are engaged in a concerted campaign to talk up the group's growth prospects and market positions.

On Thursday, the company gave details of expansion plans for existing operations and highlighted its "strong" project pipeline, and has also announced significant new resources, across different ore bodies, including the Simandou project, in Guinea, with new resources of 2,25-billion tons of iron-ore, and the La Granja project, in Peru, with 2,8-billion tons of inferred copper resources at 0,51% copper and 0,1% zinc.

The company also highlighted its Resolution project in Arizona, in the US, with 1,3-billion tons of inferred resources containing 1,51% copper and 0,04% molybdenum, as well as its Sulawesi nickel project, which, on Wednesday announced an inferred resource of 162 m/t lateritic nickel, with potential for further mineralisation through further exploration. This project would see the company further establishing itself in the nickel market. The company's Eagle project would be its first entry into the nickel project, where the company said it was getting "encouraging initial results".

In addition, the Kennecott Utah copper project recently announced an upgrade of resources to 637-million tons at 0,48% copper at its Bingham Canyon mine.

The primary driver of demand was identified by Albanese as the growth of the urbanised population in India, China and other emerging markets.

Albanese added that Rio Tinto's compound yearly production growth was expected to be 8,6% through to 2015 and that world-class growth options in place beyond this time were very valuable, especially in strong markets.

Supply-side pressures and constraints would also contribute to ongoing strong markets. Grades would continue to decline with ageing orebodies, delays in approvals, and regulatory and environmental delays were also a challenge, as well as continued skills constraints.

"There has never been a time at which our options for expansion have been so valuable. Rio Tinto has a clear road map to deliver industry-leading growth over the next few years, but this is just the beginning. Rio Tinto will continue to unlock value from tier one assets that are unrivalled in the sector," stated Albanese.

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