Chief executive Tom Albanese said in Shanghai that the cases brought against Australian former executive Stern Hu and three of his ex-colleagues had prompted a wide-ranging reassessment of the company's China operations.

"Recommendations from that review have been put in place," the Wall Street Journal quoted Albanese as saying.

"We all have to learn from our experiences," he added.

Albanese offered few specifics about the changes made, but in February, the company named a new managing director for China, based in Shanghai. On Friday, Albanese also introduced a new Beijing-based vice president for China.

The company has more than 150 employees in Beijing, Shanghai and the southern Chinese city of Guangzhou.

"The key for what we want to do in China is to develop long-term relationships," Albanese said, according to the WSJ.

In March, Hu and three Chinese colleagues were convicted of stealing trade secrets and taking more than 13 million dollars in kickbacks from Chinese steel firms during tense talks over iron ore last year.

The case rattled relations between Beijing and Canberra, and stoked concerns among foreign investors about the rule of law in China.

Rio sacked the four men following their conviction, citing their "deplorable" behaviour, and Albanese then said he was "determined" not to let the case keep the firm from building its "important relationship with China".

Earlier this month, when Rio posted a 260 percent jump in first-half net earnings, chairman Jan du Plessis said developing ties with China was a "key priority" for the company.

In July, Rio Tinto and China's Chalco, the listed subsidiary of state-owned Chinalco, signed an agreement to jointly develop a huge iron ore field in the west African state of Guinea.

earlier related report
Rio chief denies BHP iron ore venture dead
Shanghai (AFP) Aug 20, 2010 - Mining giant Rio Tinto on Friday dismissed speculation that its proposed iron ore joint venture with BHP Billiton was on the brink of collapse due to regulatory disapproval.

"I don't even know where that came from," Tom Albanese, chief executive of the Anglo-Australian miner, told reporters in Shanghai.

Albanese was referring to a report in The Sydney Morning Herald that quoted an unidentified senior mining executive as saying the tie-up between Rio and BHP was "dead in the water".

"It died months ago," the executive was quoted as saying.

"It's dead and the coffin's being lowered into the ground. It's a matter of finding a face-saving way out in the coming few months."

The reports came as regulators in various countries study plans to merge the Australian iron ore operations of the two companies, which have raised competition concerns.

Albanese insisted the synergies with BHP were "indisputable and large".

"They are a prize worth doing anything to achieve. We're going to continue to strive for those synergies," Albanese was quoted by Dow Jones Newswires as saying.

The venture, which is expected to deliver more than 10 billion US dollars in savings, is due to take effect in the second half of 2010.

European steel-makers have expressed concerns that the merger would be anti-competitive, while the proposal is also being examined in Australia and China.

The synergies of a tie-up between the world's second and third-largest iron ore producers have been mooted for years, with BHP dropping a hostile bid for Rio in November 2008 as the global financial crisis took hold

Rio and BHP declined to comment when contacted by AFP. But the Herald said public relations executives at both companies insisted talks were continuing.

"I think 'dead' is a little strong," one was quoted as saying.

earlier related report
China's Ansteel says it is committed to US deal
Beijing (AFP) Aug 20, 2010 - China's Anshan Iron and Steel Group said Friday it remained committed to an investment deal with a US steel mill, a day after a senior executive said the plan had been shelved.

"AnSteel is committed to working closely with our US partners to move forward with the SDC (Steel Development Company) project," the company, also known as Ansteel, said in a statement, according to Dow Jones Newswires.

State-run Ansteel, one of China's top steelmakers, signed an agreement with the Mississippi-based company in May that includes construction of five plants in the United States.

It issued the statement after Chen Ming, vice chairman of Angang Steel Co Ltd, the listed subsidiary of Ansteel, said Thursday the company would shelve its plans in the United States due to opposition from US lawmakers.

But Fu Jihui, secretary of the Angang board, said Friday that Chen's comments were "misunderstood," according to Dow Jones.

He confirmed Chen said the deal had been "shelved," but said "that was not his intended meaning."

"I am sure the deal won't be delayed and it will advance as the parent company planned," Fu said.

Fifty US legislators have sent letters to President Barack Obama and Treasury Secretary Timothy Geithner urging them to investigate the deal, arguing the investment threatened US jobs and national security.

Officials at Ansteel and the listed unit were not available to comment when contacted by AFP.

Chinese government officials have repeatedly called on the United States to treat its companies "fairly" and not "politicise" the deal.

Sino-US relations have been strained this year over a range of economic and trade issues, including the value of the Chinese currency and Google's spat with Beijing over censorship.

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