Major miners BHP, Rio Tinto and Fortescue are reported to have urged for closer coordination and potential government support as they respond to China’s reshaping of global iron ore purchasing through China Mineral Resources Group (CMRG).
Iron ore is Australia’s largest export earner at about $115 billion annually, but China may impact this as it has centralised roughly 70 per cent of imports through CMRG, established in 2022.
The Australian Financial Review has reported Australian producers are increasingly considering whether a more unified negotiating approach could strengthen their position, despite long-standing competition rules that have traditionally prevented coordinated pricing or volumes.
“If we can enhance our competitive ability in what is clearly a global marketplace for iron ore, then we should be doing just that,” former ACCC chair Graeme Samuel told AFR.
The Federal Government has been monitoring the situation, as discussions between miners and CMRG came up again this week.
“Iron ore pricing is ultimately a matter for iron ore producers and their customers,” a spokesperson for Resources Minister Madeleine King told AFR.
At company level, BHP chief financial officer Vandita Pant said cooperation across the sector is being explored.
“You [BHP and Rio] should be thinking of any opportunities to work together,” Pant said at the Australian British Chamber of Commerce, adding that any approach must preserve transparency. “This is quite important across every commodity.”
Industry executives say negotiations with CMRG have become more challenging, reinforcing interest in a coordinated industry stance as Australia’s iron ore sector adapts to shifting global demand dynamics.