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Rio Tinto chief 'admits bribery' Rio Tinto group 'admit bribery'
(about 8 hours later)
An Australian executive of mining giant Rio Tinto has told a court in the Chinese city of Shanghai that he took bribes, an official has said. Four executives of mining giant Rio Tinto have admitted to a court in the Chinese city of Shanghai that they took bribes, officials have said.
Four Rio Tinto employees - Australian Stern Hu and three Chinese colleagues - face charges of bribery and commercial espionage. Lawyers for the men - Australian Stern Hu and three Chinese colleagues - said they admitted accepting some money but are disputing the amounts.
An Australian diplomat who attended the court session said Mr Hu had "made some admissions" on the bribery matters. The group, arrested in July, also face charges of commercial espionage.
The trial of the group, arrested in July, is due to last three days. The charges will be heard on Tuesday behind closed doors, despite Australian government objections.
Lawyers for Mr Hu's colleagues said their clients had also admitted taking bribes, but disputed the amounts. Foreign reporters are not allowed to attend the trial, which is expected to last for three days.
Foreign reporters are not allowed to attend the trial.
The Australian government has expressed concern that its consular officials will be prevented from witnessing Tuesday's court session, at which the commercial espionage charges will be discussed.
Anger over dealAnger over deal
Stern Hu was Rio Tinto's lead negotiator in the talks with Chinese steel mills to try to settle a price for China to buy iron ore from Australian mining companies. Stern Hu - charged, according to reports, with accepting bribes of about $900,000 (£600,000) - was Rio Tinto's lead negotiator in the talks with Chinese steel mills to try to settle a price for China to buy iron ore from Australian mining companies.
Although Australian Prime Minister Kevin Rudd has said that the world will be watching, the Chinese authorities have obscured the view Nick BryantBBC Sydney correspondent Read Nick's thoughts in fullAlthough Australian Prime Minister Kevin Rudd has said that the world will be watching, the Chinese authorities have obscured the view Nick BryantBBC Sydney correspondent Read Nick's thoughts in full
He and three of his Chinese colleagues - Liu Caikui, Ge Minqiang and Wang Yong - have been held in detention since they were taken from their homes on 5 July last year. He and three of his Chinese colleagues - Liu Caikui, Ge Minqiang and Wang Yong - have been held in detention since they were arrested at their homes on 5 July last year.
Both the commercial espionage and bribery charges carry lengthy jail terms. If convicted on commercial espionage and bribery charges they face lengthy jail terms under Chinese law.
According to reports, Mr Hu was charged with accepting bribes of about $900,000 (£600,000).
Tom Connor, the Australian consul-general in Shanghai, told journalists that Mr Hu "did acknowledge the truth of some of those bribery amounts".Tom Connor, the Australian consul-general in Shanghai, told journalists that Mr Hu "did acknowledge the truth of some of those bribery amounts".
The other men also admitted accepting money but were contesting the amounts alleged, their lawyers said. The other men also admitted accepting money but were contesting the amounts alleged, their lawyers said. One of the men, Wang Yong, denies taking a $9m bribe.
RIO TINTO TRIAL Four executives including one Australian on trialGroup face charges of bribery and illegally obtaining commercial secretsParts of the trial will be held behind closed doors, despite Australian objectionsTrial is scheduled to last three daysRIO TINTO TRIAL Four executives including one Australian on trialGroup face charges of bribery and illegally obtaining commercial secretsParts of the trial will be held behind closed doors, despite Australian objectionsTrial is scheduled to last three days
The BBC's China correspondent, Damian Grammaticus, says that the admissions come as a surprise. Rio Tinto had said that its four employees had done nothing wrong. The BBC's China correspondent, Damian Grammaticas, says that the admissions come as a surprise because Rio Tinto had said that its four employees had done nothing wrong.
Speaking as the trial opened, Rio Tinto's chief executive, Tom Albanese, said that the company remained committed to strengthening ties with China.Speaking as the trial opened, Rio Tinto's chief executive, Tom Albanese, said that the company remained committed to strengthening ties with China.
The case was "obviously of great concern to us", he told a forum in Beijing. "I can only say we respectfully await the outcome of the Chinese legal process."The case was "obviously of great concern to us", he told a forum in Beijing. "I can only say we respectfully await the outcome of the Chinese legal process."
RIO TINTOLast updated: 22 Mar 2010, 16:30 UK pricechange%3730.00p+60.00+1.63 More data on this share price
A month before the group were arrested, Rio Tinto scrapped a $19.5bn (£12.5bn) deal with China's state-owned Chinalco in favour of a tie-up with rival giant BHP Billiton, which angered some in Beijing.A month before the group were arrested, Rio Tinto scrapped a $19.5bn (£12.5bn) deal with China's state-owned Chinalco in favour of a tie-up with rival giant BHP Billiton, which angered some in Beijing.
But ties have since improved - last week Rio Tinto signed a deal with Chinalco to develop a massive iron ore mine in Guinea.But ties have since improved - last week Rio Tinto signed a deal with Chinalco to develop a massive iron ore mine in Guinea.
'Watching closely''Watching closely'
On Tuesday, the court will address the commercial espionage charges.On Tuesday, the court will address the commercial espionage charges.
The Australian Department of Foreign Affairs and Trade said it was disappointed with the Chinese court's decision not to allow its consular officials to attend this part of the trial. The Australian Department of Foreign Affairs and Trade has said it is disappointed with the Chinese court's decision not to allow its consular officials to attend this part of the trial, saying it had "registered" the Australian government's concern with Chinese officials in Beijing and Canberra.
"The government's disappointment with the decision has been registered with Chinese officials in Beijing and Canberra," it said in a statement issued over the weekend. Officials said Mr Hu's lawyer, Duan Qihua, would be present throughout the trial.
It said Mr Hu's lawyer, Duan Qihua, would be present throughout the trial.
US firms 'feel unwanted' in ChinaUS firms 'feel unwanted' in China
Australian Prime Minister Kevin Rudd told reporters on Monday that his government would be "monitoring the trial very carefully".Australian Prime Minister Kevin Rudd told reporters on Monday that his government would be "monitoring the trial very carefully".
Last week Chinese officials warned Australia against "politicising" the case. He spoke after Chinese officials warned Australia against "politicising" the case last week.
China relies heavily on mining giants like Rio Tinto to feed its huge appetite for raw materials to power its economy.China relies heavily on mining giants like Rio Tinto to feed its huge appetite for raw materials to power its economy.
And our correspondent says that other foreign firms are watching the Rio trial closely.And our correspondent says that other foreign firms are watching the Rio trial closely.
The case has made many foreign businesses in China nervous about what information could be treated as commercially or politically sensitive.The case has made many foreign businesses in China nervous about what information could be treated as commercially or politically sensitive.
China's laws on the subject are opaque. And courts are often seen as lacking in independence. China's laws on the subject are opaque and courts are often seen as lacking in independence.
The trial also comes as a growing number of foreign businesses say they are facing problems operating in China.The trial also comes as a growing number of foreign businesses say they are facing problems operating in China.
The internet giant Google is threatening to close its Chinese website, saying it has come under attack from hackers. Internet giant Google is threatening to close its Chinese website, saying it has come under attack from hackers.
A survey of American businesses, which was released as the Rio Tinto trial began, showed a third now say they are discriminated against compared to their Chinese rivals by the legal and regulatory system, our correspondent says. And a survey of American businesses, released as the Rio Tinto trial began, showed a third said were discriminated against compared to their Chinese rivals by the legal and regulatory system, our correspondent says.