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Rio Tinto employees arrested in China

Four employees of Rio Tinto, the Anglo-Australian mining group, have been arrested in China without explanation, raising tensions as the company is locked in hard-fought negotiations over iron ore prices.

Along with other international mining groups, Rio is in the midst of talks over iron ore contracts for 2009-10, which have still not yet been resolved even though many contracts expired last week.

The miner has also been heavily criticised in China following its withdrawal from a planned $19.5bn investment by Chinalco, the state-owned aluminium company.

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