China arrests Rio Tinto workers, alleging theft of state secrets

China has arrested four employees of Anglo-Australian mining giant Rio Tinto Ltd. on charges of stealing state secrets, the Xinhua news agency reported Thursday.

The report contained no details of the charges other than to quote state security officials in Shanghai saying that the mining company employees are accused of "alleged stealing of China's state secrets."

The arrests apparently came last weekend, amid contentious iron ore price talks between Rio Tinto and Chinese steel mills. Xinhua did not indicate whether the case is linked to the negotiations.

Australia says one of the arrested Rio Tinto employees is Australian, and it is demanding consular access to him. The detained Australian, Stern Hu, is the Shanghai-based general manager of Rio's Chinese iron ore business, according to the Australian government, which says the three other detainees are Chinese nationals.

Meanwhile, a Chinese steel executive who had "close contact" with Hu has been detained by Beijing police, the 21st Century Business Herald newspaper reported Thursday. 

Tan Yixin, general manager of Shougang International Trade & Engineering Corp., oversaw iron ore purchases, the Herald reported. It gave no indication whether the two cases were linked.

China treats a sweeping array of economic and other data as state secrets.

The maximum penalty for a conviction on espionage charges under Chinese law is life in prison.