China Mineral Resources Group Co (CMRG) and Rio Tinto reached the long-term agreement earlier this month, according to people familiar with the matter, who asked not to be named discussing a private matter. The contract will cover the period from November this year to May 2028, the people said.

CMRG has rapidly expanded its influence in the global iron ore market since it was established in 2022 to consolidate purchases by Chinese steelmakers and strengthen their bargaining power with top suppliers. Bloomberg reported in September that CMRG told some mills to hold off on purchases of Rio Tinto’s Pilbara Blend, as contract talks with the miner reached a critical point.

China is the world’s largest iron ore importer by a wide margin and takes the bulk of its cargoes from Australia and Brazil, the biggest producers, to feed the nation’s vast steel industry. Benchmark prices of the commodity have fallen about 15% this year, recently dropping below US$90 a ton in Singapore. 

“Rio Tinto has a long and successful relationship with our customers in China, spanning more than 60 years,” the company said in response to a Bloomberg request for comment. “We don’t comment on the detail of confidential commercial negotiations.”

CMRG didn’t immediately comment.

Negotiations with CMRG have proved challenging for Rio Tinto’s main Australian rivals. A standoff with BHP Group lasted for months before ending with a one-year deal through June 2027 that included greater use of yuan pricing. Fortescue Ltd, meanwhile, warned this week that restrictions on its sales during talks with CMRG could weigh on full-year earnings.

CMRG has also struck an agreement with Kumba Iron Ore Ltd, with the Anglo American Plc-linked producer reaching a deal from April until March 2027.

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