It is reported that Rio Tinto Ltd has hit back at BHP Billiton's hostile approach, playing up its independent growth prospects amid renewed speculation of a Chinese backed counter bid.

Mr Paul Skinner chairman of Rio in an open letter to shareholders repeated his board's belief that BHP Billiton's three for one share offer significantly undervalued Rio Tinto and its prospects.

Mr Skinner reminded shareholders of Rio's growth plans for iron ore and copper mining and for aluminum production. Mr Skinner said that "Together these are positioned to capture strong growth in demand in the developing economies, including China and India.”