China is going to teach Rio Tinto a lesson.

[touchring]

Re: China is going to teach Rio Tinto a lesson.

This China/Rio Tinto stuff is a little weird.

Sounds to me like some government official got scammed or screwed up and so is trying to lay blame on Rio Tinto.

I have a hard time seeing this as geo political / etc. China does not help itself out one iota freaking out current and potential commodity partners.

The explanation is simple the politburo thought that what happened at rio tinto is a lost of face to china, so rio tinto must be taught a lesson.

[skyson]

Re: China is going to teach Rio Tinto a lesson.

The explanation is simple the politburo thought that what happened at rio tinto is a lost of face to china, so rio tinto must be taught a lesson.

who wouldn't be pissed off when you help someone out of deep water on condition of a deal, then the counter party breaks the deal once he is out of trouble?

http://www.guardian.co.uk/business/2...lco-investment

The fact that the Rio share price has risen by 50% since the deal was first mooted on 12 February changed the picture for the mining group, said another source.

The original proposal with Chinalco would have raised much-needed cash to help Rio with $20bn of debt payments needed over the next two years. But the arrangement was seen by some vociferous shareholders as too financially generous to the Chinese, especially once prices in the mining sector bounced back

"The deal with the Chinese is dead," said one well-informed source, who added that Rio was the party that had finally decided to bring an end to discussions.

Rio was at the brink of bancrupcy when the steel price collapsed.


Thanks metalman for the pointer to a nice read.

[blazespinnaker]

Re: China is going to teach Rio Tinto a lesson.

looks like I was right. China main is distancing itself from the website and its claims.

[marvenger]

Re: China is going to teach Rio Tinto a lesson.

A guy in my course in an ex politician, when he was one and on a trip yo China, chinese party folk thought he was far more important than he was and kept asking him which side Aust was on. He freaked out and eventually had to say you're asking the wrong guy as he became more uncomfortable with his increasing knowldege of the dynamics of geopolitical relations.