Former China magnate charged with murder and gun-running

Prosecutors in central China have charged the former chairman of Hanlong Mining with gun-running and other crimes as part of a "mafia-style" gang.

Police last year announced the detention of Liu Han and an investigation into his younger brother Liu Yong - also known as Liu Wei - on suspicion of various criminal activities.

In a report carried by the official Xinhua news agency, prosecutors in the central province of Hubei said the two Lius set up the gang in 1993, along with 34 others, which "carried out a vast number of criminal activities".

The gang was responsible for nine murders, the report said.

“Those charged also came up with myriad ways to draw in and corrupt officials who worked for the state, seeking their protection, to consolidate and expand their influence on society,” Xinhua added.

“Liu Han, Liu Wei and the others formed, led and participated in mafia-style crimes, murder, assault, illegal detention, interference in state functions, affray, extortion, gambling, illegally buying and selling guns, illegal gun ownership ... (and) fraud.”

Hanlong could not be reached for comment. It was also not possible to reach either of the brothers for comment.

The probe into Liu, ranked the 230th richest person in China by the Shanghai-based Hurun 2012 Report, marks one of the highest-profile cases against a private businessmen since president Xi Jinping took power last year, vowing to crack down on corruption.

The police investigation into the activities of Liu and his associates eventually spanned more than 10 provinces and cities, including the capital Beijing, Xinhua said.

Police seized thousands of bullets, plus 20 guns and three hand grenades, the report said, an unusual detail in a country where gun ownership is tightly controlled and gun crime rare.

State media reported last year that Liu was held for helping his brother Liu Yong evade capture over a 2009 triple murder.

Hanlong, based in southwestern Sichuan province, holds a majority interest in the Australian-listed iron ore miner Moly Mines and is Sundance Resources' biggest shareholder, though its proposed A$1.4 billion ($1.27 billion) takeover of Africa-focused Sundance was called off last April after Hanlong missed funding deadlines.

Reuters