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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Rio rejects Chinese bribe reports Thu Jul 16, 2009 11:59pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Rob Taylor and Tom Miles CANBERRA/BEIJING (Reuters) - Global miner Rio Tinto on Friday strongly defended its four employees being held in China on accusations of industrial espionage, saying claims they bribed Chinese steel mills were unfounded. The Anglo-Australian miner said it was "very concerned" for its workers, held in Shanghai since July 5. The detention of Australian Stern Hu and three Chinese colleagues have strained Australia-China ties, with Beijing warning Canberra not to interfere in its judicial independence. The detentions have also unsettled the global iron ore trade, but Rio, which sells billions of dollars worth of iron ore to Chinese steel mills each year, said it was maintaining high tonnages of iron ore shipments to China. "Rio Tinto believes that the allegations in recent media reports that employees were involved in bribery of officials at Chinese steel mills are wholly without foundation," Sam Walsh, chief executive of Rio Tinto's Iron Ore division said. "We remain fully supportive of our detained employees, and believe that they acted at all times with integrity and in accordance with Rio Tinto's strict and publicly stated code of ethical behavior," Walsh said in a statement. China detained the four workers on allegations of stealing state secrets related to sensitive iron ore price negotiations. The detentions have complicated annual negotiations on iron ore contract prices between Chinese steel mills and Australia's top mining firms Rio and BHP Billiton. Iron ore is used to make steel. This year's negotiations have been fraught, since they coincided with the collapse of a deal by Chinese state-owned aluminum firm, Chinalco, to increase its stake in Rio. BILATERAL WARNINGS Australia and China traded warnings on Thursday over the spy case, while the United States urged Beijing to ensure transparency and fair treatment for staff of foreign companies. Australian Foreign Minister Stephen Smith said he believed China had not yet reached a conclusion that the four detained Rio employees were guilty and investigations were ongoing. Smith, who discussed the detentions with China's Vice Minister for Foreign Affairs He Yafei at a meeting in Egypt on Thursday, said statements by an official in Beijing that the four had harmed China's economic interests were not conclusive. Australia understood the matter was "subject to an investigation, subject to Chinese law and Chinese potentially criminal, legal and judicial processes," and had made that point to He during their meeting, said Smith. "An investigation is under way. He (Stern Hu) has not yet been on the receiving end of charges. If and when he is, we will deal with it at that point in time," he said by telephone from Dubai. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! 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