Morning:
8°c
The Chinese government has confirmed it has arrested four employees of Rio Tinto for spying.
The official Chinese news agency said the four Rio men have been detained on charges of espionage and stealing state secrets.
The arrests turn up the heat between China and the Australian miner over the price of iron ore imports to feed China's steels mills.
One of those arrested has been named as Stern Hu, Rio's chief negotiator.
The arrests come weeks after Rio spectacularly snubbed Chinalco, the Chinese aluminium group.
Rio had been prepared to bring in Chinalco as a major investor, but after a revolt by shareholders called off the deal and raised $15 billion (£9.3 billion) from its own investors in a rights issue.
News of the arrests came from the Australian foreign ministry, indicating they may have reached the status of a diplomatic incident.
A spokesman for Rio said: “We have been advised by the Australian government of the surprising allegations.
“We are not aware of any evidence that would support such an investigation.”
