China Mineral Resources Group (CMRG), the state-backed entity created to centralize China’s iron ore purchasing power, has instructed domestic steel mills to halt negotiations with Rio Tinto over shipments starting September 2026. CMRG now negotiates on behalf of more than half of China’s annual iron ore imports exceeding 1.2 billion metric tons according to Wood Mackenzie. The directive issued on August 6 follows a pattern where CMRG pressures major Australian miners during annual contract talks to extract lower prices, more flexible terms, or progress toward yuan-denominated contracts. Australia accounts for over half of China’s iron ore imports, making it the country’s most valuable export. Rio Tinto’s situation is particularly complex as its largest shareholder is Chinalco, China’s state-owned aluminum giant, which is also involved alongside Rio Tinto in the Simandou iron ore project in Guinea.
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