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Thread: Four Rio Tinto employees arrested in Shanghai China

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[quote=BOBERT,373740]You are wrong Marrie. There is no conviction. The CHARGES have been downgraded. Although in China the two seem identical. No evidence, if any exists, has yet been produced.

There is no compromise either. There is a backdown. The iron ore price negotions continue without RIO TINTO succumbing to the pressure exerted. The charges were downgraded because the cost to China would have proved too great in the vain hope of "killing a chicken to scare the monkey".

The reason is simple. Today Chinas partly government owned "Yanzhou Coal Mining Company Limited" has bid A$3.7 BILLION to takeover another Australian owned company, Felix Resorces. China Inc. knows that this bid, and any future takeover bids, would have little chance of sucess if the charges wern't downgraded. It would appear that wiser heads have finally prevailed.

China continues to refuse to buy at the benchmark contract price and purchases iron ore from RIO at record spot market prices approaching $US100 per tonne. The benchmark contract price for Australia iron ore is $US40 and for Brazillian iron ore is $US60. If you dont believe me then read this;
http://business.smh.com.au/business/pressure-on-china-as-iron-ore-price-rises-20090731-e4cq.html

Untill a realistic compromise new contract iron ore price is reached, China continues to shoot itself in the foot. China needs Australias resources. Australia needs Chinas money. Prior to this ridiculous episode it has been a mutually beneficial trading relationship and the two nations were good friends. Lets hope that now it can be again.[/quote]

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