Mine Deal Puts New Scrutiny on China’s State Industries

ZHONGSHE, China — A moribund coal mine here descends deeply, more than 3,800 feet underground. But the deal in which a Chinese state-owned conglomerate bought it may be even darker and more labyrinthine.

The Zhongshe mine and two others, in Shanxi Province in northern China, are at the center of unusually public accusations of mismanagement and corruption afflicting one of the nation’s flagship state conglomerates, China Resources. Critics say that the $1.6 billion purchase was vastly overpriced and illegal and that large sums may have been squandered or, as some are claiming, improperly diverted.

Read Full Article HERE

Keith Bradsher and Chris Buckley, The New York TImes via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/bVfvfsLsExU/