With the 2010 iron ore talks due to begin next month between the world's leading iron ore exporters and China, there is no sign of a let-up in the acrimony that has marked negotiations this year.
The atmosphere was soured a bit more yesterday with Don Argus, the outgoing chairman of Anglo-Australian miner BHP Billiton, taking a parting shot at Beijing's anger at being unable to negotiate lower prices this year, remarking that China needed to 'play with the big boys'.
'I don't know what creates the hostility. I can remember in 2005, people were hostile when we increased the iron ore prices 70 per cent,' he told reporters after a luncheon speech.
Attempts to set a benchmark iron ore price collapsed earlier this year after talks between producers BHP and Rio Tinto and the China Iron and Steel Association (CISA) reached a stalemate.
CISA demanded a 45 per cent reduction on 2008-09 benchmark iron ore prices, although steel mills in Japan, South Korea and Taiwan had already agreed to a 33 per cent cut. CISA argued that since China was the Australian miners' biggest customer, it deserved a larger price reduction.
Hopes for a negotiated settlement were finally ended when China arrested Australian Stern Hu, the head of Rio's iron ore business in China, and three Chinese Rio employees, charging them with illegally obtaining commercial secrets.
