sinosteel denies massive losses @ rio tinto jv

Sinosteel denies massive losses at Rio Tinto JV

Reuters, 6.02am 13/12/2008

BEIJING - Chinese steel trader Sinosteel said that it was business as usual in all of its global operations as it strongly denied reports of big losses and a leadership shake-up.

The Sydney Morning Herald had said that massive losses at Sinosteel caused the closure of the Channar iron ore mine, a joint venture with Rio Tinto, and that the state-owned firm's president, Huang Tianwen, could have his power curbed by the Chinese government.

"At present all projects of Sinosteel's domestic and foreign businesses are operating normally and stability is being maintained. There is no issue of losses," a company spokesperson was quoted as saying by the official Xinhua news agency on its website.

The report said that the Channar mine had scaled back production in the middle of November but was gradually building back to its normal levels again.

It also said that there was no basis in fact to speculation about an appointment of a new party secretary and chief executive at the company.

The Sinosteel spokesperson added that its absorption of Australian iron ore prospector Midwest Corp, which it acquired earlier this year, was proceeding well as a long-term strategic investment, Xinhua said.

The Sydney Morning Herald said the value of the $1.3 billion Midwest deal had collapsed with the plunge in iron ore prices.