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Sydney - Australia on Monday said Chinese allegations that mining giant Rio Tinto waged a six-year industrial espionage campaign that cost Beijing more than $100bn were not new.
Foreign Minister Stephen Smith played down the claims, published online at the weekend by the State Secrets Bureau, as an analyst said the row over China's arrest of a Rio worker for spying was growing "more serious by the day".
The latest claims also caused Rio shares to plunge more than three percent in Sydney trading on Monday.
"The allegations referred to on the (website) ... are not new," a spokesperson for Smith said, adding: "The government has always said the Stern Hu case was complex and involved serious allegations."
Chinese authorities detained Australian citizen Stern Hu and three other Shanghai-based Rio employees in early July, accusing them of bribery and stealing state secrets during iron ore contract negotiations.
A report published over the weekend on the baomi.org website run by the secrets watchdog said Rio was involved in a "six-year espionage case (that) involved corruption, information gathering and spying."
Ord Minnett analyst Peter Arden said Rio fell A$2.02 or 3.33% to A$58.55 on the Australian market amid fears China was taking its dispute with the Anglo-Australian firm to "a whole new level."
"I think it is starting to worry a few investors and it is a ratcheting up of the whole process just when people were hoping it was starting to subside," Arden said.
The claims from the bureau, which is responsible for protecting the state secrets of China's government and Communist Party organisations, estimated Rio's spying had cost its steel sector 700 billion yuan ($102bn).
Chinese media reports in July had said Rio bribed officials at 16 major Chinese steel makers during iron ore talks.
Rio is yet to comment on the latest allegations but said last that China's accusations are "wholly without foundation."
Southern Cross Equities Director Charlie Aitken said case threatened to sour Rio's long-term relationship with China.
"This situation with Stern Hu appears far more serious by the day," he said. Hu has not yet been charged after more than a month in detention and the Australian government has repeatedly called on Beijing to deal with the case expeditiously.
- AFP
