The mining company BHP Group has officially concluded negotiations with the Chinese state-owned company China Mineral Resources Group (CMRG) regarding the supply of iron ore. This agreement marks the end of a months-long dispute between the parties, which significantly impacted the market situation and complicated access for Chinese metallurgical enterprises to this essential raw material.
This is reported by Finway
Resolution of the Dispute and New Market Prospects
The agreement between BHP and CMRG became relevant after BHP’s top executives, including the current and future chief executive officers, visited China in early April for meetings with CMRG and leading clients. Expectations for a compromise in the market persisted throughout the negotiation period.
“The market had been anticipating a compromise since the current and future CEOs of BHP visited CMRG and leading clients in China in early April.”
BHP announced the conclusion of negotiations alongside the publication of its quarterly financial report. At the same time, the company did not disclose details regarding the pricing mechanism, contract duration, or other important terms, making it difficult to assess the full scope of the agreements.
Ore Inventory Situation and Production Performance
According to Macquarie Group, approximately 23 million tons of fine iron ore from BHP are currently stored in Chinese ports. About half of this volume comes from the Jimblebar mine, which previously faced certain restrictions. It is currently unknown how these stocks, as well as other ore held by international traders, will be brought to market.
BHP also released production results for the third quarter of the 2025/2026 financial year, which will end on June 30. From January to March, the company produced 62.8 million tons of ore, which is a 2% increase compared to the same period last year. For the first nine months of the current financial year, production totaled 197 million tons, also reflecting a 2% year-on-year growth.
The forecast for the 2025/2026 financial year remains unchanged: BHP plans to produce between 258 and 269 million tons of iron ore.