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Rio Tinto espionage case

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556: 79:. Chinalco currently owns 9.3% of Rio Tinto; the additional investment would have raised Chinalco's ownership stake in Rio Tinto to 18.5%. The proposed deal met strong political opposition in Australia, and Rio Tinto decided instead to raise the money through existing shareholders and by forming a joint venture with 106:
Accusations posted on a website controlled by the Chinese State Secrets Bureau, alleging that large amounts of "intelligence and data" have been found on computers of the arrested Rio Tinto employees. A report on publishing website affiliate of China's national secrets watchdog accused Rio Tinto of
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Following the trial, Stern Hu was sentenced to 10 years jail. Hu and other convicted executives have also had their employment terminated by Rio Tinto Ltd. It is reported that the motive behind the terminations is in regards to a breach of conduct, with Rio Tinto accepting the evidence provided
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Alex Vanselow stated that selling iron ore on the open market like copper would mean that deals would be handled in a more transparent manner and that cases like the Stern Hu case would not be possible. Another benefit would be that investors would have a better idea of price trends.
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Chongqing Evening News (重庆晚报) claims that fallout from the espionage scandal, on July 5, has caused Rio Tinto damages to its reputation worth up to 100 billion yuan in share price (US$ 14.6 billion, 17.4 billion AUD) after dropping from highs of 77 AUD on the
139:. Share market data shows that Rio Tinto stock actually started to decline on 12 June, 23 days before the espionage case scandal was reported on, reaching the bottom on July 13 at 46.63 AUD before steadily rising to a price of 59.99 AUD as of August 15. 59:
The arrests came during difficult negotiations over the price of iron ore for the 2009-2010 period. After steep increases in 2008, Chinese steelmakers hoped to see iron prices come down again because of the
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The government dropped the charges relating to the alleged theft of trade secrets before the trial, and the defendants admitted to having received bribes during the trial.
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data showed that Rio Tinto's global iron ore revenue in the 5 years from 2004 to 2008 were US$ 41 billion. Jiang consequently admitted to using fabricated data from
283: 463: 303: 64:. The Rio Tinto employees are accused of having industry data crucial to the negotiations too detailed to have been obtained legally. On Thursday, July 16 110:
Rio Tinto was accused of causing US$ 100 billion worth of damages to the Chinese economy over a 6-year period, by Jiang Ruqin, a Chinese employee with the
408: 612: 617: 591: 319: 107:"winning over and buying off, prying out intelligence... and gaining things by deceit", during critical annual iron ore pricing negotiations. 28:, in the People's Republic of China, who were subsequently accused of bribery and espionage. Two days later, an import executive of the 247: 622: 51:
showing instances of bribery. Rio Tinto stated that the trial will not affect business ties, according to its chief executive.
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reported that Rio Tinto had evacuated its iron ore and steel industry research staff from Shanghai the day before, as had "
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The arrests also came shortly after Rio Tinto declined to sell part of the company to the Chinese state-owned company
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In August 2009, BHP Billiton called for iron ore to be traded on an open market like other commodities. BHP
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with the Chinese side being represented by CISA. Traditionally the role of the Chinese side was filled by
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and three Chinese colleagues, Wang Yong, Ge Minqiang, and Liu Caikui, went on trial in
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other foreign groups... until conditions there become more certain.
437:"Rio Tinto Accuser Says Article Was His Own Opinion (Update5)" 150: 80: 114:
Administration for the Protection of State Secrets. However,
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began with the arrest on 5 July 2009, of four staff in the
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Regan, J 'Rio Tinto moves iron, steel staff out of China'
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Qi, Z & Hao, T 'Bribery is widespread' in Rio case,
320:'Iron ore pricing system near collapse as talks go on', 146:, to advise the company how to distance itself from Hu. 365:"China detains Rio Tinto executive on spying charges", 36:
was also arrested. The Rio Tinto employees, Australian
557:"BHP: iron ore reform could have prevented Rio case" 381:"China drops CISA being in charge of iron ore talks" 222:"Rio Tinto signs mining deal with China's Chinalco" 198:(in Chinese). 南方网-腾讯网. 15 July 2009. Archived from 485:"Google Finance: Rio Tinto (Public, ASX:RIO)" 409:"Chinese website slams Rio Tinto "espionage"" 8: 592:Analysis of the espionage case by Stratfor 597:"The Rio Tinto case in the Chinese media" 248:"Chinese court sentences Hu to 10 years" 102:Chinese State Secrets Bureau accusations 174: 586:Coverage of the iron-ore pricing issue 281:Rio Tinto fires Hu, other jailed execs 379:Sainsbury, Michael (20 August 2009). 301:China bond won't be broken: Rio Tinto 268:Hu given 'tough sentence', says Smith 7: 182:Govt: Proof against Rio spies sticks 506:"ASX: Rio Tinto (Public, ASX:RIO)" 86:Rio Tinto negotiated on behalf of 14: 613:Espionage scandals and incidents 407:Foster, Peter (10 August 2009). 142:Rio Tinto paid US$ 5 million to 580:Detailed coverage of the affair 526:Garnaut, John (27 March 2015). 90:, BHP Billiton and itself as a 137:Australian Securities Exchange 126:newspaper for his accusation. 1: 588:(Chinese media, in English) 649: 44:on Monday, 22 March 2010. 618:Australia–China relations 194: 120:China Central Television 18:Rio Tinto espionage case 623:Rio Tinto (corporation) 532:Sydney Morning Herald 322:Sydney Morning Herald 299:AAP, March 29, 2010, 279:AAP, March 29, 2010, 266:AAP, March 29, 2010, 253:Sydney Morning Herald 369:, August 2009, p.11. 195:莱钢海运部门负责人"涉力拓间谍案"被调查 414:The Daily Telegraph 367:Mining Engineering 306:2010-04-01 at the 286:2010-04-01 at the 124:China Youth Daily 640: 633:July 2009 events 568: 567: 565: 563: 553: 547: 546: 544: 542: 523: 517: 516: 514: 512: 502: 496: 495: 493: 491: 481: 475: 474: 472: 470: 460: 454: 453: 451: 449: 433: 427: 426: 424: 422: 404: 398: 397: 395: 393: 376: 370: 363: 357: 347: 341: 332: 326: 317: 311: 297: 291: 277: 271: 264: 258: 257: 256:. 29 March 2010. 244: 238: 237: 235: 233: 218: 212: 211: 209: 207: 190: 184: 179: 112:Jiangsu Province 62:global recession 648: 647: 643: 642: 641: 639: 638: 637: 603: 602: 576: 571: 561: 559: 555: 554: 550: 540: 538: 525: 524: 520: 510: 508: 504: 503: 499: 489: 487: 483: 482: 478: 468: 466: 462: 461: 457: 447: 445: 435: 434: 430: 420: 418: 406: 405: 401: 391: 389: 378: 377: 373: 364: 360: 348: 344: 333: 329: 318: 314: 308:Wayback Machine 298: 294: 288:Wayback Machine 278: 274: 265: 261: 246: 245: 241: 231: 229: 228:. 19 March 2010 220: 219: 215: 205: 203: 202:on 22 July 2009 196: 192: 191: 187: 180: 176: 172: 160: 144:Henry Kissinger 132: 104: 57: 12: 11: 5: 646: 644: 636: 635: 630: 625: 620: 615: 605: 604: 601: 600: 594: 589: 583: 575: 574:External links 572: 570: 569: 548: 518: 497: 476: 455: 442:Bloomberg News 428: 399: 386:The Australian 371: 358: 342: 327: 312: 292: 290:, Yahoo!7 News 272: 270:, Yahoo!7 News 259: 239: 213: 185: 173: 171: 168: 167: 166: 159: 156: 131: 128: 103: 100: 56: 53: 30:Shougang Group 24:office of the 13: 10: 9: 6: 4: 3: 2: 645: 634: 631: 629: 628:2009 in China 626: 624: 621: 619: 616: 614: 611: 610: 608: 598: 595: 593: 590: 587: 584: 581: 578: 577: 573: 558: 552: 549: 537: 536:Fairfax Media 533: 529: 522: 519: 507: 501: 498: 486: 480: 477: 465: 459: 456: 444: 443: 438: 432: 429: 416: 415: 410: 403: 400: 388: 387: 382: 375: 372: 368: 362: 359: 356:, 2009-07-16. 355: 351: 346: 343: 340: 339:, 2009-07-15. 338: 331: 328: 325: 324:, 2009-06-30. 323: 316: 313: 309: 305: 302: 296: 293: 289: 285: 282: 276: 273: 269: 263: 260: 255: 254: 249: 243: 240: 227: 223: 217: 214: 201: 197: 189: 186: 183: 178: 175: 169: 165: 162: 161: 157: 155: 152: 147: 145: 140: 138: 129: 127: 125: 121: 117: 113: 108: 101: 99: 97: 93: 89: 84: 82: 78: 73: 71: 67: 63: 54: 52: 48: 45: 43: 39: 35: 34:Laigang Group 31: 27: 23: 19: 599:(Danwei.org) 582:(in Chinese) 560:. Retrieved 551: 539:. Retrieved 531: 521: 509:. Retrieved 500: 488:. Retrieved 479: 467:. Retrieved 458: 446:. Retrieved 440: 431: 419:. Retrieved 412: 402: 390:. Retrieved 384: 374: 366: 361: 345: 336: 330: 321: 315: 310:Yahoo!7 News 295: 275: 262: 251: 242: 230:. Retrieved 216: 204:. Retrieved 200:the original 188: 177: 148: 141: 133: 109: 105: 85: 81:BHP Billiton 74: 69: 58: 49: 46: 17: 15: 337:China Daily 607:Categories 170:References 92:consortium 55:Background 562:16 August 511:15 August 490:15 August 469:15 August 448:15 August 421:15 August 392:20 August 130:Aftermath 116:Bloomberg 26:Rio Tinto 417:. London 304:Archived 284:Archived 232:20 March 226:BBC News 164:Stern Hu 158:See also 122:and the 96:Baosteel 77:Chinalco 42:Shanghai 38:Stern Hu 22:Shanghai 354:Reuters 206:18 July 66:Reuters 541:6 July 564:2009 543:2018 513:2009 492:2009 471:2009 450:2009 423:2009 394:2009 234:2010 208:2009 88:Vale 32:and 16:The 151:CFO 609:: 534:. 530:. 439:. 411:. 383:. 352:, 250:. 224:. 98:. 83:. 72:" 566:. 545:. 515:. 494:. 473:. 452:. 425:. 396:. 236:. 210:.

Index

Shanghai
Rio Tinto
Shougang Group
Laigang Group
Stern Hu
Shanghai
global recession
Reuters
Chinalco
BHP Billiton
Vale
consortium
Baosteel
Jiangsu Province
Bloomberg
China Central Television
China Youth Daily
Australian Securities Exchange
Henry Kissinger
CFO
Stern Hu
Govt: Proof against Rio spies sticks
莱钢海运部门负责人"涉力拓间谍案"被调查
the original
"Rio Tinto signs mining deal with China's Chinalco"
BBC News
"Chinese court sentences Hu to 10 years"
Sydney Morning Herald
Hu given 'tough sentence', says Smith
Rio Tinto fires Hu, other jailed execs

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