Fortescue strengthens cooperation with China for uninterrupted ore supply

Australia’s Fortescue is deepening its ties with China, which is one of the reasons for the uninterrupted supply of iron ore to this country. This was stated by the company’s CEO Dino Otranto, Reuters reports.

China Mineral Resources Group (CMRG), which purchases ore on behalf of more than half of Chinese steel mills, has restricted the country’s metallurgists from purchasing certain batches of raw materials from BHP amid negotiations on a contract for 2026. This has raised concerns in the industry about China’s dominance in many commodity markets and its ability to dictate terms by leveraging its volume.

To secure its continued iron ore exports, Fortescue has strengthened its management in China and is purchasing battery storage, solar panels and wind turbines from Chinese companies, he said. Otranto also said that despite having broader ties with China than just iron ore operations, the company is still in active negotiations with CMRG on supplies.

Fortescue also reported that in the second quarter of the 2025/2026 financial year (October-December 2025), iron ore shipments amounted to 50.5 million tonnes, compared to 49.4 million tonnes in the same period a year earlier. Total ore shipments for the first half of the current financial year amounted to 100.2 million tonnes, up 3% year-on-year.

It should be recalled that in August last year, Fortescue received a syndicated term loan of 14.2 billion yuan (approximately $2 billion) for its green energy plans. Leading Chinese, Australian and international lenders participated in the financing.