ABC News reported that Mr Tom Albanese CEO of Rio Tinto is standing by his original view that BHP Billiton's USD 180 billion takeover offer undervalued Rio Tinto's assets and prospects. Rio Tinto rejected the offer of 3.4 BHP shares for each Rio share as too low.

Speaking at a lunch in Sydney, Mr Albanese said that he is confident the medium to long term trend was for a sustained and substantial increase in demand for metals and resources.

Mr Albanese also said that Australia should not ignore the opportunities of foreign investment from China. He said that Chinese investment in Australian resources could provide significant benefits for both countries, and Australia's regulatory framework would ensure the nation's interest would be protected.

He said that "We are very encouraged by all the work that the Treasurer Wayne Swan is doing with respect to clarifying investment by sovereign wealth funds, by foreign companies and foreign countries.”