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| Rio Tinto signs China mines deal | |
| (about 2 hours later) | |
| The Anglo-Australian mining company Rio Tinto says it has signed a deal with China to develop a massive iron ore mine in West Africa. | |
| China's state metals group Chinalco will pay $1.3bn (£0.85bn) for 47% of the Simandou project in Guinea. | |
| According to the company, Simandou is one of the world's biggest undeveloped iron ore deposits. | According to the company, Simandou is one of the world's biggest undeveloped iron ore deposits. |
| The tie-up comes just days ahead of the controversial trial of four Rio employees, accused of spying on China. | |
| The deal also covers rail and port infrastructure and could create tens of thousands of jobs in Guinea. | |
| "We have long believed that Rio Tinto and Chinalco could work together on major projects for mutual benefit," Rio chief executive Tom Albanese said in a statement. | "We have long believed that Rio Tinto and Chinalco could work together on major projects for mutual benefit," Rio chief executive Tom Albanese said in a statement. |
| Rejection | |
| However, relations between China and Australia are strained because of the "spying" case. | |
| The four accused, Australian Stern Hu and three Chinese colleagues, Wang Yong, Ge Minqiang and Liu Caikui, were arrested last June, and their trial begins on Monday. | |
| They were working at the time on the annual iron ore price-setting round which would determine the price that China and other customers would pay for the commodity for the year, an annual process that is now underway for this year. | |
| A month before the arrests, Rio scrapped a $19.5bn (£12.5bn) deal with Chinalco in favour of a tie-up with rival giant BHP Billiton. | |
| Australian Prime Minister Kevin Rudd has warned that the "world would be watching" the trial. |