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Epic RIO
Time: 08:07:00
Mid Price: 3679.50
Change Today: -14.50 Descending
Change % Today: -0.39 Descending
Fifty Two Week High: 3727.66
Fifty Two Week Low: 1526.64
Market Capital: 56116.59
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Now: 3679.50
3 Months ago:
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Additional information
Additional Information
Market: ASX, LSE
Sector: General Mining
Epic: RIO
News: Latest news
Web Site: Rio Tinto
Other Articles: 23-02-201018-02-201002-02-2010

Rio Tinto

Rio Tinto is a leading international mining group that finds, mines and processes the earth's mineral resources.

The Group's major products include aluminium, copper, diamonds, energy products, gold, industrial minerals (borates, titanium dioxide, salt and talc), and iron ore. Its activities span the world but are strongly represented in Australia and North America. There are also significant businesses in South America, Asia, Europe and southern Africa.

Wednesday, July 08, 2009

China holds Rio Tinto iron ore sales team members on charges of suspected espionage

by www.mineweb.net company news image

Courtesy of www.mineweb.net Author: “Lawrence Williams”

Given the rather fraught iron ore pricing negotiations between Chinese steel mills and Australian iron ore miners led by Rio Tinto, and also with the earlier cancellation of Rio's deal with Chinalco, the detention in China, on charges of espionage and of stealing state secrets, of Rio Tinto's head of iron ore marketing, Stern Hu, along with three other members of Rio's sales team raises the spectre of political harassment - although this has been denied by Australia's Foreign Minister, Stephen Smith.

In a Reuters report, Smith is quoted as saying that there was no evidence for drawing any link between the detention of Hu, who is an Australian citizen, and any commercial matters concerning Rio, including its aborted $19.5 billion tie-up with China's state-owned Chinalco.  However this is basically a mollifying statement by the Australian Minister as negotiations for Hu's release will undoubtedly be under way behind the scenes.

There is no doubt that Rio's abrogation of the proposed $19.5 million deal with China's state-owned Chinalco in favour of a successful rights issue resulting from shareholder pressure in the mega miner's need to reduce its huge debt position, raised Chinese hackles.  The refusal of Rio to back down on its iron ore contract pricing demands despite the Chinese steel mills' stated purpose of achieving a better deal than their Japanese and Korean counterparts, has also not been taken well in a nation where ‘saving face' is a significant part of the national culture.  Indeed the Chinese state News Agency, Xinhua, described Rio's arbitrary withdrawal from the Chinalco deal as "perfidy".

The detention of the Rio employees may indeed be coincidental, but if not does indicate the sometimes perilous position companies can put themselves in in dealings within an autocratic state.  One hopes that this is only gesture politics by the Chinese and the detainees are released without delay.

In a statement a Rio Tinto spokesman commented: 'It appears four employees from Rio Tinto's Shanghai office have been detained for questioning by the Chinese authorities in Shanghai. The reasons for these actions are unclear. Rio Tinto intends to co-operate fully with any investigation the Chinese authorities may wish to undertake and has sought clarification on what has occurred. Rio Tinto is concerned about the employees' wellbeing and is doing everything possible to help them and support their families.'

And then subsequently, following the notification that the arrests were made on espionage charges, 'We have been advised by the Australian Government of this surprising allegation.  We are not aware of any evidence that would support such an investigation.  We will continue to work to support our employees and their families."

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