Jailed Rio staff face new delays

Chinese investigators extended their inquiry into espionage allegations against four Rio Tinto employees yesterday, saying it would last at least another month.

The four-month-old investigation against the mining giant's staff, including Australian Stanley Hu, was extended at the request of the Chinese public security bureau.

The four were formally charged with "illegally obtaining commercial secrets" in August and are being held in prison.

The company declined to comment yesterday, saying it does not believe public statements are helpful. The group has moved many of its China-based employees to Singapore since the arrests but has maintained throughout that the four, who have avoided the more serious charge of "stealing state secrets," are innocent of all charges.

The delay comes as negotiations over iron ore prices – which have now completely broken down – have stalled. Conventionally, annual prices are set for all contracts when the first regional deal is struck between the miners and a steel mill. However, China has held out for lower prices than already agreed, despite Rio Tinto agreeing a 33 per cent discount with other Asian steel mills.