BHP has signed an agreement with a Chinese state-owned buyer for iron ore supplies

Mining company BHP Group has confirmed the conclusion of negotiations on iron ore supplies with the Chinese state-owned buyer China Mineral Resources Group (CMRG), according to Bloomberg.

This brings to an end a months-long dispute between the parties that had impacted markets and hindered Chinese steelmakers’ access to key raw materials.

The market had been expecting a compromise since BHP’s current and incoming chief executive officers visited CMRG and leading customers in China in early April.

BHP Group confirmed the conclusion of negotiations alongside the release of its quarterly report, though without details regarding the pricing mechanism, the contract term, or other conditions, making it difficult to assess the scope of the agreement.

According to an assessment by Macquarie Group released last week, the agency notes, Chinese ports are holding about 23 million tons of BHP’s fine iron ore in stockpiles, with roughly half of that volume coming from Jimblebar, which had previously been subject to restrictions. It remains unclear how these and other stocks held by international traders will be released to the market.

BHP also announced production figures for the third quarter of the 2025/2026 fiscal year (ending June 30). In January–March, ore production totaled 62.8 million tons (+2% year-over-year). Over the first nine months of the current fiscal year, the figure rose to 197 million tons (+2% year-over-year).

The company left its production forecast for the 2025/2026 fiscal year unchanged at 258–269 million tons.

As a reminder, over the past six months, Beijing has gradually tightened restrictions on BHP shipments amid a contractual dispute. On March 12, 2026, CMRG expanded the ban to include Newman fines. A week earlier, traders were ordered to purchase fewer new shipments of Newman fines, lump ore, and Mac fines, although the directive allowed the purchase of those grades of ore already stored in ports. Last September, the purchase of Jimblebar was banned, and in November, Jinbao products were banned.

However, in mid-April 2026, CMRG eased restrictions on some BHP raw materials, and ports informed customers that new shipments were permitted.