China’s state-owned China Mineral Resources Group (CMRG) has reached an agreement with Australia’s Rio Tinto for annual iron ore supplies. Reuters reported the deal, citing sources familiar with the matter.
CMRG verbally informed some Chinese steelmakers of the agreement on October 21. The group was expected to start collecting their required purchase volumes the following day. The quantity covered by the contract has not been disclosed. Neither company responded to Reuters’ requests for comment.
In August, CMRG instructed some Chinese steelmakers to suspend negotiations with Rio Tinto over shipments scheduled from September. The move was intended to strengthen the group’s position in annual contract talks.
Founded in 2022, CMRG aims to centralize iron ore procurement and secure better terms for Chinese steelmakers. The group operates amid weak domestic demand and thin margins in the industry.
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