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After weathering the collapse of a $19.5 billion deal in 2009 and the arrest of four executives, Rio Tinto Group (RIO) 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-based Rios 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.

While Rio has lost share to archrival BHP Billiton Ltd. (BHP) in China since the trouble welled up in 2009, it nevertheless increased Chinese sales 72 percent to $19.5 billion in the three years through June 30. BHP boosted Chinese sales 119 percent to $21.6 billion in the period.

Since the fallout from 2009, the company has improved its position substantially, said Tim Schroeders, who helps manage $1 billion at Pengana Capital Ltd. in Melbourne, including Rio shares. He credited Rios 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 $82 billion a year appetite for the steelmaking material. With stakes that high, any help Rio can 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 $19.5 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.

The arc in Rios fortunes in China date to 1973, when it says it became the first foreign company to supply iron ore to the Asian nation. Since then Rio has shipped more than 1 billion metric tons. China generated sales of about $20 billion in calendar year 2011, or 33 percent of Rios total, and almost double that of North America, its second-largest market. Rio doesnt break out earnings from China.

Rio, BHP and Vale are jostling for an edge in supplying the worlds fastest-growing major economy with key commodities such as iron ore, copper and aluminum. By 2030, China will need to build 50,000 skyscrapers -- equal to ten New York cities -- and there will be 221 cities with populations of more than 1 million, compared with 35 in Europe today, according to estimates from the McKinsey Global Institute.

The running jade horse, designed by Beijing-based Taiwanese artist Huang Zhiyang, is 1.6 meters long and 0.35 meters wide. It has steel frame set with jade pieces and stands in a pool of water. In China, water is a symbol of wealth and when spoken the word has a similar sound to cai, a word for money or wealth.

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Rio Tinto Taps Feng Shui for Good Fortune in China: Commodities

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