BHP Billiton Offered To Exchange China Data With U.S.

Now infamous whistleblower Web site WikiLeaks has some pretty good dirt on BHP Billiton BHP, the world's largest mining company, but where to start with said dirt is the real quandary. Is it more provocative that the company offered to exchange information about China with the U.S. or that BHP CEO Marius Kloppers takes credit for wrecking China Aluminum's ACH planned $23.9 billion investment in BHP's big rival Rio Tinto RIO? The Sydney Morning Herald cites cables supplied by WikiLeaks exclusively to the paper that show BHP was involved in both salacious activities. "Despite Chinalco's late May announcement that it would restructure its investment deal with Rio Tinto to allay [Australian government] concerns about the perceived Chinese influence on Rio Tinto, Kloppers confidently predicted on June 4 that the deal would fall through,'' US consul general Michael Thurston said of Kloppers' remarks to him during a confidential meeting at BHP's Australia headquarters in June 2009, the Herald reported, citing the cables. The next day, Rio, the world's third-largest mining company, scuttled the deal with state-run Chinalco. The Chinese company was looking to double its investment in Rio to 9%. Immediately after pulling the plug on Chinalco, Rio Tinto announced a joint venture with BHP to combine their iron ore operations in Western Australia, the Herald reported. That deal was scrapped last year due to anti-competition concerns. Kloppers, irritated by China's watchful eye on his company, also offered to exchange information with Thurston regarding China. Kloppers also said China was watching Rio. China is the largest market for both companies. Rio has had tense relations with China since four of its staffers were arrested in the country in 2009. In 2010, China released a report regarding the collapse of the Chinalco/Rio deal that pointed directly at BHP for operating a negative campaign to create public backlash over investment in an Australian company by a Chinese firm.