Thursday
Jul092009
Iron Ore War
Thursday, July 9, 2009 at 01:07AM
Australia's Rio Tinto recently refused a US$19.5 billion offer from China-owned Chinalco. Rio Tinto not only rebuffed the offer, they then proceeded to form a production joint venture with BHP Billiton for all of their iron ore assets in Western Australia.
Maybe it was a godfather offer?
Four Rio Tinto Employees Accused of Espionage
The employees from Rio Tinto’s Shanghai sales office were accused of stealing government secrets. Three are part of the local sales team while one is an Australian national, Stern Hu, the general manager for the company’s China operations.
Iron ore price negotiations previously were conducted on an annual basis but rising costs and a near monopoly position (70% of global seaborne trade) by Rio Tinto Plc/BHP Billiton and Vale have seen negotiations dragging out and more buying in the spot market.
Maybe it was a godfather offer?
Four Rio Tinto Employees Accused of Espionage
The employees from Rio Tinto’s Shanghai sales office were accused of stealing government secrets. Three are part of the local sales team while one is an Australian national, Stern Hu, the general manager for the company’s China operations.
Iron ore price negotiations previously were conducted on an annual basis but rising costs and a near monopoly position (70% of global seaborne trade) by Rio Tinto Plc/BHP Billiton and Vale have seen negotiations dragging out and more buying in the spot market.
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