Steel magnate named in Rio China trial

One of China’s richest men was on Tuesday caught up in the murky and politically sensitive trial of four Rio Tinto employees in Shanghai, when one of the accused named Du Shuanghua, one of China’s top steelmakers.

Mr Du – who was China’s second-wealthiest man in 2008, according to the Hurun rich list – gave $9m to Wang Yong, one of the accused Rio executives, the court was told.

Mr Wang’s lawyer says his client denies that the money was a bribe, but rather a loan to buy shares in Hong Kong.

The four executives of the Anglo-Australian mining giant are on trial for bribery and stealing commercial secrets. But their trial is closed to the media, which must rely on defence lawyers’ accounts of what was said in court.

Allegations against China’s wealthy businessmen are not unusual. Huang Guangyu, the richest man in 2008, is expected to go on trial soon facing accusations of bribery, insider trading and illegal business dealings. He has been detained since late 2008.

However, the naming of Mr Du by one of the accused executives adds an extra level of domestic sensitivity to a case that has already attracted international attention.

According to Zhang Peihong, Mr Wang’s lawyer, his client’s case turned on allegations that he accepted a $9m bribe from Mr Du, who owns Rizhao Steel, one of the country’s biggest steelmakers, or whether the money was paid for other purposes, as he claimed.

Private steel companies, like Mr Du’s Rizhao, have pushed in recent years to secure supply contracts with big miners like Rio, as the contract price has often been substantially lower than the global spot price for iron ore.

Mr Du has also been involved in a contentious battle to retain control of Rizhao, after coming under heavy pressure to sell a majority stake in his company to a state-owned rival.

Mr Du had attempted to block the takeover by handing as much as 30 per cent of Rizhao’s shares at a low valuation to a Hong Kong-listed company controlled by close relatives of a senior Chinese leader.

The bribery trial of the four Rio Tinto executives concluded on Tuesday with court argument over the size of the alleged bribes.

The commercial secrets trial continues today.

Additional reporting by FT reporters