[tgs]

Yeah, because most gold mining companies with multimillion dollar gold claims on the line are engaged in espionage.

The paranoia is beyond stupid. I'm reminded of a guy from my town, San Diego, who worked for Qualcomm and who got arrested for espionage in Russia. His crime was he was working to construct the cell phone network the Russian government hired Qualcomm to build. A local Russian engineer who was pissed off that a foreign expert who actually had experience with the equipment got hired instead of him turned in his name to the FSB. That's right, the guy got arrested for working on a cellphone tower the Russian government hired him to work on. Stupid.

[amberamuletuk]

Qualcomm's world headquarters is about five miles from my house and loads of people in my neighborhood work there. That Russian case got boat loads of media attention at the time just like this Rio Tinto case is getting now. It's just unbelievable the amount of paranoid insecurity some countries have.

[tramadolwithall]

This stuff is not surprising to me. Once you negotiate prices on a national basis, the business automatically becomes an affair of state, with all that attaches to it, like espionage and political interference.

[DraidodaRip]

And I don't care what A.O. Scott says. "Duplicity" was crap. The plot couldn't have been more obvious with Admiral Ackbar in every scene. But watching Paul Giamatti brawl with that other corporate guy at the beginning was pretty cool.

[CatLuvkaLover]

Guess where next years price negotiations won't happen...

Besides BHP and Rio are teaming up in Australia. It will suck to be a Chinese steelmaker in the next few years I can tell you.

[Cnbaapuy]

Guess where next years price negotiations won't happen...

Besides BHP and Rio are teaming up in Australia. It will suck to be a Chinese steelmaker in the next few years I can tell you.

China is pissed because it made some stupid iron purchases last year (and this one too) and now wants a discount. With commodity prices rising, they began asking for a price far too low. You can hardly blame Rio Tata for that. The irony is, when foreigners try to negotiate in China, they always have to pay more. Yet when China negotiates with foreigners it outright demands a lower price or it takes its ball and beans the other guy with it. Poor play on their part.

[Precturge]

Now that there's no contract, on what basis is Rio Tinto supplying Chinese steel producers?

[xtrupoke]

At the prices set last year?

[attanilifardy]

Hmm... So why is delay due to this complication in China's best interests?

[tLO0hFNy]

They want a lower price for iron, and I want a pony.

If it's getting the old price, why would Rio Tinto feel any time pressure to sign a new contract? At the end of the day, certain executives are expendable.

[IRYzouNv]

Officially the contracts are over from July 1st (long term contract prices are negotiated apr to mar and the tonnage shipped after that is carried over fom the previous price to the current price). This means that Rio doesn't have to supply iron ore under the determined long term contract volumes any more. If they are smart the "big 3" stop delivering to the chinese. 2 things will happen: freight rates will tank making 50 % of the domestic chinese iron ore players above marginal cost bleeding them dry. 2nd, it will cause the iron ore spot prices to rise to unknown heights while all the other steelmakers have already their contracts settled, bleeding the chinese steelmakers dry again. Besides, it is monsoon season in India so no iron ore will come from there.
They are ****ed i tell you...

[BEyng6hj]

The longer they let the go, the worse it will get for China's sake, since they will get bleed dry if they are seen to be refusing to pay what the market demands and since the have the demand, the power goes to the supplier since he controls the production and can hold off for awhile.

[bawayTeen]

I imagine giving and accepting bribes are the usual way of things in a corrupt country like China.

[extessarere]

Well, in the other news, Vale is asking 88 % increase this year... And the annual contract negotiations are being held in Singapore..

[nushentelve]

I imagine giving and accepting bribes are the usual way of things in a corrupt country like China.

It's not just corruption but a part of the culture. These kinds of deals are extremely common on all levels from public to personal. To not engage in them makes doing any kind of business nearly impossible in China. The government often then uses this to prosecute "enemies." However, if Stern and others really accepted such large amounts, then they were just asking for trouble.

Still, the entire case reflects how there is no rule of law in China until it is deemed politcally important. Thus, shipments get redirected, milk tainted, and bribes must be paid to even get the most basic of services at times.

[mdUzAMbG]

Rio tata is a carnival show, right?