Rio Tinto Staff Face Spy Charges in China

A spokesman for Shougang Group, parent company of Tan's employer, said he could not confirm whether Tan was detained. He would give only his surname, Wu. The foreign ministry and Beijing police did not immediately respond to questions by phone and fax.

Australian diplomats are pressing for access to Hu and details of his case, according to Australian Foreign Minister Stephen Smith. Under a consular agreement, China has a week to respond and Smith said diplomats expect to see him Friday or Saturday.

"We are perplexed by the reason for his detention," Smith told Australian Broadcasting Corp. television. "We're asking for additional information as to the basis of his detention."

Rio, which is headquartered in London but also has executive offices in Melbourne, said it knew of no evidence of spying.

"We have been advised by the Australian government of this surprising allegation. We are not aware of any evidence that would support such an investigation," the company said in a statement. It declined to comment further.

Rio Tinto, the world's third-largest mining company, is lead negotiator for global iron ore suppliers in price talks with China, the world's biggest steel producer.

The two sides failed to reach agreement by the June 30 expiration of previous buying contracts after China's steel industry association rejected prices negotiated by Rio with Japanese and Korean mills. The other major suppliers are Australia's BHP Billiton (BHP Quote) and Brazil's Vale.

China criticized Rio and the Australian government last month after the company abandoned a deal to have state-controlled Aluminum Corp. of China(ACH Quote), or Chinalco, invest $19.5 billion in Rio Tinto.