What happens when China does't get what it wants..
Posted: Wed Jul 08, 2009 3:44 pm
Just imagine what could be happening if the merger actually went ahead...China detains four Rio Tinto employees
AAP
July 08, 2009 02:00pm
* Four executives held in China
* Company says reasons are "unclear"
* Rio Tinto: Share chart
AUSTRALIAN authorities are seeking urgent consular access to a Rio Tinto executive who has been detained in Shanghai.
In a statement Australia's Department of Foreign Affairs and Trade confirmed an Australian was detained in China.
"We are seeking urgent consular access,'' the statement said.
The DFAT statement said authorities were "not yet able to comment on the reason for his detention''.
"Consular staff of the Shanghai Consulate-General and the Department of Foreign Affairs and Trade in Canberra are in communication with the man's family and his employer,'' DFAT said.
Reasons unclear
Rio Tinto, the world's third largest mining company, confirmed a total of four company employees from its Shanghai office had been detained for questioning by Chinese authorities.
"The reasons for these actions are unclear,'' Rio Tinto said.
"We intend to co-operate fully with any investigation the Chinese authorities may wish to undertake and have sought clarification on what has occurred.
"We are concerned about our people's wellbeing and are doing everything we can to help them and support their families.''
It is understood Australian passport holder Stern Hu is one of the four executives, who are thought to have been detained since Sunday.
The other Rio Tinto employees detained are believed to be Chinese passport holders.
Bitter negotiations
The arrests come against the background of recent bitter negotiations over iron ore sale contracts and Chinese anger over Rio Tinto's decision earlier this year to abandon a $US19.5 billion ($24.49 billion) merger with state-owned Chinalco.
Rio's iron ore team avoided meeting in China for more than a month holding talks in Hong Kong and Singapore instead out of fears their phones and emails were being bugged and that key information was finding its way straight back to the China Iron & Steel Association.
Officers from China's Public Security Bureau are also believed to have raided Rio's Shanghai's offices this week and removed computers used by each of the four executives.
Speculation the arrests could be related to alleged manipulation of the iron ore market is unconfirmed.
"Rio Tinto is concerned about the employees' well-being and is doing everything possible to help them and support their families," the company said in a statement.
http://www.news.com.au/business/story/0 ... 62,00.html