Rio Tinto is banking on strong demand continuing from China as it announced it is investing billions in two iron ore operations.
The mining giant is investing $4.2bn in expanding operations in Western Australia and Guinea.
The lion's share - $3.7bn - will go into the Australia's Pilbara operations, with the remainder being invested in the Simandou iron ore project in Guinea.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
The money is part of a $16bn investment programme that Rio has planned for 2012.
The firm said it was directing investment to projects that would generate the most attractive returns for shareholders and were resilient under any probable macroeconomic scenario.
"We continue to see positive prospects for medium- to long-term iron ore demand driven by ongoing growth in Chinese consumption," Rio Tinto Iron Ore Chief Executive Sam Walsh.
"We continue to forecast that annual Chinese steel production will grow from its current level of around 700 million tonnes to around one billion tonnes a year out towards 2030."
The company also hopes to take advantage of problems faced by rivals, saying several high-profile competitor projects had recently been either delayed or postponed.
Who is the richest person in the world?
The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
By Vaishali Varu Published
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
By Ruth Emery Published