Chinese steel mills expected to hold tough negotiations

AUSTRALIAN miners are expecting Chinese negotiators to be extremely thorough and drive a tough bargain on prices, particularly in light of the current tense Chinese/Australian relations.

The international relation has been pressed due to the global financial crisis and particularly the recent arrest of Rio Tinto’s Stern Hu.

However, Cape Lambert Iron Ore chief executive Tony Sage says that Australian companies need to remember that China needs our mineral resources.

Sage says that if China did not import any minerals from Australia the resources industry would be in a major downturn, but he does not believe this will happen, he says “this whole thing will be a storm in a teacup."