BHP seeks alternative ore buyers amid contract dispute with China – Reuters

Mining company BHP Group has shipped Jimblebar iron ore, banned from sale in China, to Malaysia and Vietnam in search of alternative buyers, Reuters reports.

In September 2025, China Mineral Resources Group (CMRG), a Chinese state-owned buyer, banned Chinese steel mills and traders from purchasing Jimblebar Blend Fines (JMBF) from BHP, a type of medium-grade ore, during negotiations for a new contract, which has not yet been concluded. According to two separate traders, Jimblebar stocks in major Chinese ports have increased by 360% since the end of September last year, reaching 8.1 million tons on January 13.

According to the agency, on January 14, the Lowlands Blue, loaded with about 95,000 tons of JMBF ore from BHP, docked in Malaysia. This is the first such cargo unloaded in the country since the Kpler shipping system began keeping records in 2019. At the same time, according to the latter and two traders, in December last year, the Cape Yamabuki delivered approximately 75,000 tons of JMBF to Vietnam. Kpler data shows that this was the first such shipment to this country since at least 2024.

Although these shipments are small compared to BHP’s annual production (over 60 million tons of JMBF), the unusual deals demonstrate the Australian group’s efforts to diversify its buyers. Earlier, the mining group said it was still negotiating the terms of an annual contract with CMRG and optimizing its sales channels.

Several trading sources reported that BHP is offering more discounts on its iron ore, including Jimblebar, to try to stimulate sales in China. This, in particular, prompted an order from a Vietnamese steel mill.

It should be recalled that in November last year, China Mineral Resources Group (CMRG) extended its ban on BHP iron ore to a new product, issuing an order to stop purchasing low-grade Jingbao iron ore. At the time, it was suggested that the state buyer had targeted this product instead of other Australian company shipments because the volume of lower-grade ore trading is very limited and this would not cause significant market disruption.