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Big miners 'sideline' China in iron ore talks, report
FT
January 12, 2010 12:35PM
THE world's largest miners are pushing ahead with iron ore price negotiations with Japan while leaving China out in the cold, according to a report.
The world's top three iron ore producers -- Brazil's Vale and Anglo-Australian companies Rio Tinto and BHP Billiton -- have sidelined Beijing from annual talks to set a benchmark contract price, the Financial Times said.
The companies plan to present a "take it or leave it" price to Chinese steel mills once negotiations with Japan are complete, it said.
"As far as I am concerned, they (Chinese negotiators) could come over to Australia if they want to talk," an unnamed executive told the paper.
The report comes one day after Chinese authorities said they had concluded a commercial espionage probe relating to Rio Tinto executive Stern Hu but gave no indication of whether the Australian passport-holder would face trial.
Hu and three other Rio employees were arrested in Shanghai in July during last year's iron-ore talks, prompting concerns within the industry about dealing with the fast-industrialising nation.
BHP Billiton and Rio refused to comment on the article.
"We never discuss or provide commentary on pricing discussions," a spokesman for Rio told AFP.
Japan's two largest steelmakers, Nippon Steel and JFE Steel, also refrained from commenting. "Since it's a matter of negotiations among private firms, we are not in a position to comment," said a spokesman for JFE Steel.
Annual iron ore pricing negotiations traditionally begin with Japan around November and take place alongside similar negotiations with China.
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FT
January 12, 2010 12:35PM
THE world's largest miners are pushing ahead with iron ore price negotiations with Japan while leaving China out in the cold, according to a report.
The world's top three iron ore producers -- Brazil's Vale and Anglo-Australian companies Rio Tinto and BHP Billiton -- have sidelined Beijing from annual talks to set a benchmark contract price, the Financial Times said.
The companies plan to present a "take it or leave it" price to Chinese steel mills once negotiations with Japan are complete, it said.
"As far as I am concerned, they (Chinese negotiators) could come over to Australia if they want to talk," an unnamed executive told the paper.
The report comes one day after Chinese authorities said they had concluded a commercial espionage probe relating to Rio Tinto executive Stern Hu but gave no indication of whether the Australian passport-holder would face trial.
Hu and three other Rio employees were arrested in Shanghai in July during last year's iron-ore talks, prompting concerns within the industry about dealing with the fast-industrialising nation.
BHP Billiton and Rio refused to comment on the article.
"We never discuss or provide commentary on pricing discussions," a spokesman for Rio told AFP.
Japan's two largest steelmakers, Nippon Steel and JFE Steel, also refrained from commenting. "Since it's a matter of negotiations among private firms, we are not in a position to comment," said a spokesman for JFE Steel.
Annual iron ore pricing negotiations traditionally begin with Japan around November and take place alongside similar negotiations with China.
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