Australian miner BHP has reportedly struck a key iron ore supply agreement with Chinese state-owned unit China Mineral Resources Group (CMRG), a significant step in stabilizing its position in its biggest export market.
The deal follows months of negotiations after earlier tensions in which CMRG limited purchases from BHP amid controversy under the terms of the contract as previously reported by SteelOrbis.
CMRG's central role in global procurement
CMRG represents approximately 80 percent of China's steel mills, making it an important player in the global iron trade ore.
The agreement ensures BHP's continued access to the Chinese market, reducing risks associated with changes in procurement strategies and price dynamics.
Price stability supported by product range
Despite lengthy negotiations, BHP maintained strong performance pricing, reporting a two percent rise in iron ore prices to $84.91/wmt in the March quarter.
This was supported by a strategic shift towards higher value products, including output from Mining District C, as well as increased sales volumes.
Strong operating performance in Pilbara
BHP's Western Australian iron ore division delivered record production of 191 million tonnes in the nine months ended March. The improvement was due to increased production volumes, improved efficiency of rail transport and
