Rio Tinto employees to stand trial in China

[February 10, 2010]  BEIJING (AP) -- Four detained employees of mining giant Rio Tinto Ltd. including an Australian national will stand trial in China on charges of stealing commercial secrets, a state news agency said Wednesday.

The Rio employees were detained in July during iron ore price talks with China's steel industry group. The case strained relations between Beijing and Australia, a key supplier of iron ore to China's steel mills.

The Xinhua News Agency said the case was accepted for trial by the Shanghai No. 1 Intermediate Court but gave no date. Phone calls to the court were not answered.

Nearly all criminal cases that go to trial in China end in conviction.

The report said the Rio employees were also charged with accepting bribes from Chinese steel companies, though earlier Chinese news reports said they were suspected of paying bribes.

The Rio employees, including Stern Hu, the company's Australian manager for its Chinese iron ore business, were detained July 5 in Shanghai while Rio acted as lead negotiator for global ore suppliers in price talks.

Australia's foreign ministry said earlier that Chinese authorities informed Australia on Jan. 11 the investigation had been completed and the case sent to prosecutors.

Australian officials have pressed Beijing to resolve the case as promptly as possible, warning that delay could erode Australian public support for close commercial ties with China.

Prime Minister Kevin Rudd warned Beijing shortly after the arrests that the world was watching its handling of the case and said China should consider its economic ties. Chinese officials have rejected Australian comments on the case as interference in the country's judicial system.

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On the Net:

Rio Tinto Ltd.: http://www.riotinto.com/

[Associated Press; By JOE McDONALD]

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