A watchdog group for China's Communist Party has accused Anglo-Australian mining company Rio Tinto Plc of overcharging Chinese steelmakers by $100 billion for its iron ore over six years, according to a media report Sunday.
The accusations were made in reports published on a Chinese-language Website called China Secret Protect Online, which claims to be affiliated with the Communist Party's State Secrets Bureau, The Wall Street Journal reported in its online edition.
The Website's reports said Rio Tinto, the Anglo-Australian mining giant, used deceptive tactics to obtain information about the Chinese steel industry over a six-year period, resulting in Chinese steelmakers being overcharged about $100 billion for iron ore.
The reports claimed the Chinese economy has been seriously damaged by the company's practices.
The Chinese monetary claim varies considerably from what the company has reported to have taken in from its iron ore business, of which China is its largest client. In its 2008 annual report, Rio Tinto reported revenues of $16.5 billion from the unit, according to the Journal.
Last month, Chinese authorities detained four Rio Tinto employees on suspicion of stealing state secrets. The employees haven't been formally charged.
The Chinese Website reports could be a harbinger of how Chinese authorities might proceed with a case against the employees, The Journal said.
On July 17, Rio Tinto issued a statement denying any wrongdoing by the employees.
The Journal said Sunday that a Rio Tinto spokesman declined to comment on the Chinese Website reports.
Source: Marketwatch
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