Rio Tinto taps feng shui for good fortune in China

After weathering the collapse of a $US19.5 billion deal in 2009 and the arrest of four executives,RioTinto did what you do in China to court better fortune: It bought a jade horse.

Standing at 1.2 meters, or almost four feet, the statue cut from the gemstone has a prime view of Shanghai from the companys office on the 40th floor of the Wheelock Square building. Its meant to help avoid any repeat of the rocky relationship the worlds second-biggest mining company has had with China, its largest customer and shareholder.

When we designed this office, we asked a feng shui master to give us some guidance and he said it was very important to have a jade horse in a pool of water, London-basedRios China managing director Ian Bauert, said in an interview, So the good Qi comes in, the good spirit comes in to recirculate and makes us a prosperous and happy company in China.

WhileRiohas lost share to archrival BHP Billiton in China since the trouble welled up in 2009, it nevertheless increased Chinese sales 72 per cent to $US19.5 billion in the three years through June 30. BHP boosted Chinese sales 119 per cent to $US21.6 billion in the period.

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Since the fallout from 2009, the company has improved its position substantially, said Tim Schroeders, who helps manage $US1 billion at Pengana Capital in Melbourne, includingRioshares. He creditedRios efforts without commenting on any potential luck from the horse, which was built from white jade.

Rio, the worlds second-biggest iron ore exporter, competes with BHP and Brazils Vale SA to feed Chinas $US82 billion a year appetite for the steelmaking material. With stakes that high, any helpRiocan get to maintain smooth relations with Chinas government is welcome, after the jailing of company executive Stern Hu two years ago and the collapse of a $US19.5 billion investment deal in 2009.

Competition for Chinese market share is getting more fierce, said Xu Xiangchun, chief analyst with researcher Mysteel.com, Having a good relationship with the Chinese government and steelmakers is critical for the miners.

Skyscrapers bloom

The arc inRios fortunes in China date to 1973, when it says it became the first foreign company to supply iron ore to the Asian nation. Since thenRiohas shipped more than 1 billion metric tons. China generated sales of about $US20 billion in calendar year 2011, or 33 per cent ofRios total, and almost double that of North America, its second-largest market.Riodoesnt break out earnings from China.

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Rio Tinto taps feng shui for good fortune in China