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China likely to probe mining giants' monopoly
By Zhang Jiawei (chinadaily.com.cn)
Updated: 2010-04-13 11:36
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China is likely to investigate the suspected monopoly abuse of the world's three mining giants as Rio Tinto issued a statement last Friday that seems to have been coordinated with Vale and BHP Billiton at a sensitive time for iron ore talks, the Economic Information Daily reported, citing an unnamed legal expert.
Rio Tinto said in last Friday's statement that it was negotiating with clients about the quarterly pricing plan. The newspaper said the three mining giants are highly coordinated in supply, transportation, pricing and timing, indicating a clear monopoly abuse.
"Iron ore prices are not totally determined by the three mining giants rather than the market rules," an unnamed person from a state-owned steel company said. Although China's steel companies are the biggest buyer of iron ore, they have no say in the talks, the person added.
The expert said there were two ways to launch an investigation into foreign companies' monopoly. The victim firms can file the monopoly case with the government, and then the government can start an investigation. But if the monopoly has a negative impact on China's economy, relevant departments can initiate the investigation.
