Rio spurns bid with 113% earnings rise

Rio's finance director Guy Elliott said: "We have consistently said the offer does not provide value to shareholders and I think this result shows that."

First-half profits were $6.9 billion (£3.7 billion), a 113% rise on the same period last year. With $1.5 billion a month in cash flow, Rio is ploughing a record $3.7 billion into capital spending.

Rio hit production records in iron ore, bauxite, alumina, aluminium, borates, titanium dioxide and thermal coal.