Rio Tinto shares slump on excess ore price claim
PERTH: Rio Tinto Group, the world's second-largest iron ore exporter, fell in Sydney trading after a report on a Chinese website blamed the company for 700 billion yuan ($102 billion) in excess ore prices
London-based Rio fell 3.3 percent in Sydney to A$58.55, the lowest level since July 30. Jiang Ruqin, an employee with the Jiangsu Province Administration for the Protection of State Secrets, who wrote the report, said in an interview that he has no involvement in a legal case against four Rio employees detained in China last month, and that no "leaders" assigned him to write the essay or reviewed the piece before publication.
China's detention last month of four members of Rio's Shanghai team, including Australian Stern Hu, has raised concern Rio's $10 billion sales to the nation may be affected. China has the ability to stop buying ore from Rio if it chooses to, RBS Equities Australia Ltd analyst Warren Edney said, adding that it was unlikely to at this stage.
