Sinochem implicated in Rio Tinto bribery case

Sinochem International (600500.SH) is among more than 20 companies implicated in the Rio Tinto bribery case that resulted in jail terms for four Rio Tinto employees, including Australia citizen Stern Hu. The South China Morning Post, citing an unnamed source who has seen court documents, reported that the documents "showed clearly the details of the bribes," including a US$9 million bribe to Rio Tinto employee Wang Yong from Du Shuanghua, founder of Rizhao Steel. Steel mills – particularly smaller operators – paid Rio Tinto employees to ensure supplies of iron ore. The report did not provide details of Sinochem’s involvement. Industry insiders have told China Economic Review that illegal practices in iron ore deals are less common than in the past, but the involvement of Sinochem and other companies would indicate that problems remain widespread.