An editorial carried Friday by a powerful news outlet of China’s communist party criticized the China Iron and Steel Association’s response to a proposed joint venture between Rio Tinto Ltd. (RIO.AU) and BHP Billiton Ltd. (BHP) as a “late arrival.”

The unusually scathing editorial, published by the China Business
Times, was also carried on the online version of the People’s Daily, a
mouthpiece for the Central Committee of the Communist Party of China.

Noting that Anglo-Australian miners Rio and BHP signed a binding
agreement to join their Western Australia iron ore operations Dec. 5,
the editorial took issue with the timing and platform of CISA’s
response.

“CISA only issued its statement on Thursday, and…the statement was
dated Dec. 9, giving a person a sense that there was hesitation about
saying it at all,” the editorial said.

In its statement, CISA strongly attacked the proposed iron ore venture, calling for the global steel industry to oppose it.

But Friday’s editorial noted that other global steel associations had
already beaten CISA to the punch, naming the World Steel Association,
Eurofer and Japan’s steel industry association as having stepped up
earlier.

“In comparison, CISA’s statement arrived late,” the editorial said.

The Ministry of Commerce also came in for some scolding.

“Rio and BHP are breaching the country’s laws. (But) the attitude of
the country’s antimonopoly agency of the Ministry of Commerce is not
clear, and only sits waiting for (Rio-BHP’s) application,” it said.

But citing an unnamed industry insider, the editorial said “the only
one that can block Rio-BHP is the European Union, because Rio is listed
in Europe.”

Rio Tinto is listed in Sydney and London.

“That’s why China doesn’t have measures to restrict Rio-BHP,” the editorial said.

Source: Dow Jones

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