Rio shares fall on China claims

[tlmorg02]

BBC NEWS | Business | Rio shares fall on China claims

Shares in Anglo-Australian mining firm Rio Tinto have fallen after China intensified its spying allegations against the company.

China's State Secrets Bureau website said Rio Tinto had spied on Chinese steel mills for six years and helped to inflate iron ore prices.

It said Chinese steelmakers had lost 700bn yuan ($102bn; £61.2bn) through overpaying for imported iron ore.

Rio's shares shed 3.3% after the report was published at the weekend.

The report said: "This six-year espionage case involved corruption, information gathering and spying."

Spying row

Last month, China accused four Rio Tinto workers of stealing state secrets, which the company has denied.

Australia has repeatedly sought a quick resolution of the case, in which one Australian and three Chinese Rio Tinto staff have been detained.

China, which detained Australian Stern Hu on 5 July, has told Australia not to interfere in the legal process.

Analysts said the latest development in the Rio Tinto spying allegation case had added to investors' jitters.

"It has to be a concern for anybody marketing anything into China," said Tim Barker, an analyst at BT Investment Management.

This case seems to linger forever. Tell me, are the allegations China has made against this company legit and warrant a real investigation, or are they simply more attempts by the government to keep competitors weak in order to protect state owned firms, why or why not?

 

[Orion]

I honestly don't know much about this particular case, but given the childish whining that usually comes from the mouths of top level bureaucrats, I'd take it with a grain of salt.

And as usual, the Chinese provide no proof, just mudslinging allegations.