China still holding Australian iron ore exec
Stern Hu "doing well," says Rio Tinto's iron ore chief
Tom Stundza -- Purchasing, 10/12/2009 9:26:28 AM
Rio Tinto Group iron ore negotiator Stern Hu is doing well despite being "detained" by the Chinese since July, according to his boss, Rio Tinto iron ore chief executive Sam Walsh. The Australian newspaper says that Walsh, speaking on ABC Radio in Perth, still isn't sure when a trial will begin on charges of illegally obtaining commercial secrets against Hu and three Chinese-national Rio Tinto employees.
Hu, an Australian citizen, just received his fourth monthly consular visit at the jail in Shanghai. The head of Rio's iron ore business in China and his Chinese staff have yet to make a formal court appearance, which now may happen in early November. Walsh says Rio Tinto continues to back its employees but plans to let due process take place.
He is quoted in The Australian as saying: "We believe that from our search of our own files and information from our code of contact and the way that we operate ... there's not an issue here. But we just need to work through the process and let the court come to that conclusion."
As has been reported on Purchasing.com, the four Rio Tinto iron ore executives were involved in annual price talks with the China Iron & Steel Association, which was holding out for a bigger discount than the 33% price-cut agreement made by Rio Tinto with steel mills in Japan, Korea and Taiwan.
Walsh says in the radio interview that Rio Tinto continues to ship all the iron ore it can mine and is selling most of its iron ore to Chinese mills on a provisional basis-which The Australian says is a de facto acceptance of the 33% discount.
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