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Wang Hongjiu, a senior executive of major Chinese steel mill Laigang Group is under investigation for "providing secrets to Stern Hu", the head of Australian mining company Rio Tinto’s Shanghai office, media reported earlier Wednesday.

The China Daily also reported Wednesday that executives from all 16 Chinese steel mills participating in iron ore price talks this year had been bribed by Rio Tinto employees.

Wang is the head of Laigang's ocean shipping department. An insider familiar with Wang said he was “taken away” by the authorities on July 5th. The insider also said he was quite surprised when hearing the news because he believed Wang Hongjiu is an "honest and industrious" man.

"Wang's work is to contact with foreign iron ore suppliers and he knows the market of iron ore transporting quite well," the insider said.