Tom Albanese, the chief executive of Rio Tinto, has indicated that the world's second-largest miner could look for new acquisitions this year, with Anglo American heading the wish-lists of many shareholders.

A bid by Rio for one of the other large diversified miners would almost certainly scupper BHP Billiton's hopes for a £75 billion takeover of its rival.

Rio reiterated its objection to BHP's offer yesterday, but admitted that it could be brought to the negotiating table if the deal was improved substantially.

However, Rio has its own plans to grow and will consider acquisition opportunities this year, when it has reduced its debt.

The mining sector is experiencing a period of consolidation and shareholders believe that if Rio is not to become a victim it must go on the offensive.

The company bought Alcan, the Canadian aluminium producer, last year for $38 billion (£19.3 billion) in the sector's largest acquisition to date.

Another deal would probably make the Anglo-Australian miner too large to swallow even for BHP, the industry's largest company.

However, Rio needs to reduce its Alcan debt before it can seriously consider further acquisitions. It plans to do this by selling $15 billion of assets as part of a divestment programme.

The company is also generating more than $1 billion of cash a month, which should enable it to reduce debt quickly.

Mr Albanese told The Times: “We are generating cash and will dispose of businesses to maintain a strong balance sheet. That will give us room to be out there looking for value-creating opportunities.”

Mr Albanese emphasised that Rio would not seek deals simply to block BHP but would look only for targets that would add value for shareholders.

Investors said yesterday that the obvious candidate would be Anglo American, which has largely stayed out of the consolidation fray.

“It makes sense for Rio to look at Anglo,” one said. “If Rio thinks it can do it without destroying value, then it has to realise that consolidation is occurring and should go for it.”

Rio could be aided in future deals by Chinalco, the Chinese-state owned aluminium producer, which took a 9 per cent stake in the miner two weeks ago.

Paul Skinner, the Rio chairman, said: “There are potential opportunities for us working with the Chinese.”

Mr Skinner also admitted that not all shareholders backed the company's rejection of BHP's bid, saying that there were always “divergent views”.

He insisted that BHP's 3.4 shares-for-one offer was “no way near” enough to be attractive to the Rio board.

Rio yesterday revealed an 11 per cent increase in underlying earnings to $13.9 billion during 2007. Net profits fell 2 per cent to $7.3 billion, owing to higher costs.

The company has increased its dividend by 31 per cent to $1.36 per share for 2007 and has also committed to a minimum dividend increase of 20 per cent for the next two years.

Analysts said yesterday that these results showed that BHP's offer did represent a good premium for Rio shareholders.

In a combined group, Rio would contribute 37 per cent of underlying earnings, based on 2007 figures, while BHP's offer would give Rio shareholders a 44 per cent stake.

Times Recommends

• Equitable Life halts £7bn sale on market turmoil
• Potential buyers emerge to save Woolworths staff
• Terrorist attacks close Bombay Stock Exchange