BHP Killed Its Own Hedge Against the Green Steel Shift

By Michael Kern - May 27, 2026

• Leaked internal documents show BHP scrapped a beneficiation plant at its Jimblebar mine that its own analysis rated positively and projected to cut 1.7 million tonnes of scope-three emissions annually – the exact kind of higher-grade ore China’s decarbonizing steel sector and new DRI-based steelmaking technology increasingly requires.
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• The cancellation came as BHP also halted a $400 million solar project, deferred a $1.3 billion renewables plan to 2031, and purchased 62 new diesel trucks locking in fossil fuel use through at least the late 2030s – all while a 2023 internal memo by BHP Australia president Geraldine Slattery warned that slow emissions progress risked "reputational impacts" and threatened the company’s "licence to operate."
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• With Simandou’s high-grade exports ramping up, China’s steel ETS tightening toward absolute caps by 2027, and Australia’s iron ore revenue forecast already declining, BHP’s decision to delay the projects that would have positioned it for a greener steel market is a strategic question as much as a climate one.

China just expanded its national emissions trading scheme to cover steel production. The EU's carbon border adjustment mechanism entered its definitive phase in January, putting a financial penalty on emissions-intensive steel. Simandou, the world's largest untapped deposit of high-grade iron ore, shipped its first cargoes to China in late 2025. The market for lower-grade ore is contracting. The market for ore that can feed cleaner steelmaking is growing.

BHP just canceled the project that would have positioned it for the second market. Instead, it bought 62 diesel trucks.

That's the core of what hundreds of leaked internal documents obtained by The Guardian and the Australian Broadcasting Corporation actually reveal. Yes, they expose the gap between BHP's public climate pledges and its internal decisions. But the more consequential story is commercial. The world's largest miner just walked away from its best hedge against the structural shift in its most important market.

The canceled facility was a beneficiation plant at Jimblebar in Western Australia's Pilbara region. The purpose was to upgrade BHP's iron ore to a higher grade – the kind that steelmakers need to produce lower-emissions steel. BHP's own analysis rated the project as having "excellent social value" and "well-aligned" to its climate targets. The projected return on investment was positive. And it would have cut scope-three emissions by 1.7 million tonnes annually, the equivalent of removing more than 350,000 cars from the road.

BHP shelved it in mid-2025. The reasoning cited internally: marginal economics, competition for capital. That calculus was made before China's steel ETS tightened, before the EU's carbon levy moved from paperwork to actual financial liability, and before Simandou – grading at 65% iron against Pilbara's typical 58-62% – started displacing lower-grade supply. The math may look different now.

The documents also show BHP paused a board-approved $400 million solar-and-battery project at Jimblebar, citing "cash prioritization requirements," and deferred a $1.3 billion plan for solar, wind and battery infrastructure to support electric trucks and trains – with no major spending now expected before 2031. To make up the gap, BHP purchased 62 new diesel trucks, locking in fossil fuel operations at the site through at least the late 2030s and potentially 2041. A 2023 memo from BHP Australia president Geraldine Slattery warned explicitly that "slow emissions reduction progress" in the Pilbara risked "reputational impacts" and undermined the company’s “licence to operate, sustain and grow.” The company’s response to that warning was to slow the reduction further.

A BHP spokesperson told Bloomberg the company had cut emissions 36% from its 2020 baseline by mid-2025, with 70% of total electricity now drawn from renewable sources, and that key decarbonization technologies for heavy equipment “are not yet ready to be deployed.” BHP did not respond to a separate request for comment.

BHP’s main Pilbara rival is taking a different approach. Fortescue is pushing ahead with electrification and renewables despite industry skepticism about its timelines, and is investing in green iron as a commercial product, not just a climate commitment. The divergence matters because this is no longer a story about reputation. Australia’s iron ore export revenue is forecast to drop from A$116 billion to A$97 billion by 2026-27. China is building direct reduction ironmaking capacity at scale, which requires higher-grade ore than Australia typically produces. Beijing has issued mandates requiring steelmakers to increase green energy use. Chinese demand for standard Pilbara ore has already peaked.

BHP has a 30% emissions reduction target for 2030 and a net-zero pledge for 2050. Those commitments are now backed by diesel trucks ordered to last until 2041 and a beneficiation plant that got canceled because the economics were deemed marginal. The internal documents make clear that BHP knew the reputational risk. What they also reveal, unintentionally, is the commercial one.

By Michael Kern for Oilprice.com 

 

Fortescue begins construction on 690MW solar farm in Pilbara

Staff Writer | May 25, 2026 | 

Cloudbreak solar farm. Credit: Fortescue

Fortescue (ASX: FMG) has begun construction on the 690MW Turner River solar farm in the Pilbara region, as well as the 650MWh battery energy storage system (BESS) at its flagship Cloudbreak mine.

These projects form part of Fortescue’s rapidly expanding integrated renewable energy ecosystem to power its Pilbara operations, the Australian iron ore miner said in a press release on Monday.

According to Fortescue, the Turner River solar farm represents the final solar installation required to deliver the company’s Real Zero decarbonization plan. Once complete and combined with the Solomon Airport (440MW), Cloudbreak (190MW) and North Star Junction (100MW) solar farms, Fortescue will have delivered all solar generation required to achieve Real Zero across its terrestrial iron ore operations.

Together, the projects will generate more than 1.4GW of renewable energy capacity – enough to power around half a million Australian homes, the company said. Construction of the Turner River solar farm is expected to be complete in 2028, with over 1 million solar panels to be installed during the build.

Meanwhile, the Cloudbreak BESS is targeted for completion in the 2027 fiscal year, delivering 74MW of power for a period of approximately eight hours. The system is expected to comprise 124 battery units integrated directly into the Cloudbreak solar farm.

Fortescue also completed commissioning of two battery energy storage systems at Eliwana and North Star Junction, strengthening the delivery of firm renewable power across its Pilbara operations.

Fleet electrification

At the same time, Fortescue is rapidly electrifying its mobile mining fleet, with 16 electric excavators and an electric drill already operating across its iron ore operations. Around half of the company’s excavator fleet will be electric by the end of 2026, it said.

Fortescue’s first battery electric haul truck is also expected to be operational before the end of the year. Its first in-house developed 6MW fast charger has commenced commissioning and will support the rollout of battery electric haul trucks across the Pilbara, the company said, adding that the charger will be capable of fully charging a haul truck in approximately 30 minutes.

Facility testing of XCMG’s prototype battery electric wheel loader, dozer, grader and water cart is also in the final stages, with the equipment preparing to make the journey from China to the Pilbara for site testing, it added.

Decarbonization efforts

“While others are still debating whether decarbonization is possible, Fortescue is getting on with building what’s needed to do it,” Fortescue’s metals and operations CEO Dino Otranto said in a news release.

“The technology is here. The economics are improving every year. And anyone watching global fuel markets can see exactly why electrification and renewable power matter more than ever.”

Construction also continues on the 133MW Nullagine wind farm, which will further diversify Fortescue’s renewable energy mix, the company noted.

Fortescue has already constructed more than 480 kilometres of high-voltage transmission infrastructure across the Pilbara. Once complete, the network is expected to extend beyond 620 kilometres, physically connecting Fortescue’s renewable energy assets to its mines, rail and port operations.

“Our solar farms, transmission lines, wind generation and batteries are being built right now across the Pilbara. We are moving first because the economics, the technology and the national interest are all pointing in the same direction,” Otranto said.

 

Fortescue at loggerheads with peers over diesel, decarbonization

Kristie Batten | May 27, 2026 | 

Fortescue Metals CEO Dino Otranto. (Image courtesy of Fortescue | Facebook.)

Simmering tensions between Fortescue (ASX: FMG) and larger peer BHP (ASX: BHP) came to a head on Wednesday when executives from both companies appeared at a mining industry event in Perth.

On Monday, the ABC’s Four Corners program aired an investigation into BHP’s decarbonization efforts, claiming the company had deferred billions of dollars worth of green projects. BHP blamed the delays on insufficient technology, a position Fortescue disputed during the program.

BHP WA Iron Ore asset president Tim Day told the AFR Mining Summit on Wednesday that battery-electric haul trucks were “not quite ready yet”.

During a fireside chat with Fortescue Metals CEO Dino Otranto at the event, the interviewer pointed to advertising commissioned by BHP citing research that its emissions fell 36% over five years while Fortescue’s rose 24%.

Otranto conceded the figures were accurate but attributed the increase to Fortescue’s energy-intensive Iron Bridge magnetite operation, adding that emissions across its hematite business had declined.

“Our total portfolio will go down over the next couple of years as we bring on these trucks that don’t exist,” Otranto said in a pointed jab at BHP.

Otranto also took aim at criticism surrounding Fortescue’s ambitious 2030 target to achieve real zero emissions.

“In the mining industry, we have been hammered for deployment of capital,” he said. “We’ve been named as wasting capital, so generally we become ultra conservative (…) So, there’s no way that somebody is going to risk what we’re doing at Fortescue.

“Now, we have a very different risk appetite. And over the years, it’s proven to be the best value return for the shareholder.”

Otranto defends diesel stance

In April, Fortescue launched a national advertising campaign calling for reform of the Australian government’s diesel tax “handout”.

Australian miners are major beneficiaries of the Fuel Tax Credit Act 2006, which refunds diesel excise to off-road fuel users.

Otranto defended the campaign, saying it cost only “a couple hundred thousand dollars”.

“The size of the campaign, in terms of relative media campaigns and support for media outlets, it’s kind of a drop in the ocean,” he said.

“To be honest, running a few TV ads — it’s been blown up as this major propaganda campaign.

“What are we actually advocating for? I know that I’m bucking the trend, and I’m standing out from the crowd, but we firmly believe that the current disincentives to align with both state and federal government to go green is absolutely not good enough.”

Fortescue remains isolated in its position, with miners including BHP and industry lobby groups campaigning against changes to the legislation.

Otranto took particular issue with Chamber of Minerals and Energy of Western Australia CEO Aaron Morey describing any change to the diesel rebate as “really bad tax policy”.

He said the comments left him “a bit hot under the collar” and prompted him to write a letter to the CME, of which Fortescue is a member.

“The peak industrial body here in WA, I don’t think adequately consulted, irrespective of the outcome of a position,” Otranto said.

“There was no consultation on that. Period. And I thought it was, to be honest, the weirdest thing I’ve ever seen in my life.”

Federal Resources Minister Madeleine King also weighed in, telling ABC Radio the government was not considering changes to the diesel rebate.

“What I find concerning is how we have companies wanting to use government policy to create an advantage over their competitors,” she said.

“Now, I think competition is a really good thing in any market and the same goes for iron ore, but to see campaigns waged throughout the media is, I think, a bit off when companies should perhaps look in their own backyard and monitor their own behaviour.”

 

Leaked documents show world’s biggest miner quietly shelved billions in climate projects

Cecilia Jamasmie | May 25, 2026 |

Ore at Jimblebar open-cut pit iron mine in the Pilbara region of Western Australia. (Image courtesy of BHP.)

BHP (ASX: BHP) is said to have delayed billions of dollars in Pilbara decarbonization projects despite internally warning that slow emissions cuts could damage its reputation and undermine its “licence to operate,” leaked company documents show.

Hundreds of internal records obtained by the Australian Broadcasting Corporation (ABC) and The Guardian Australia indicate the world’s largest miner paused renewable energy and electrification plans in Western Australia even as executives publicly promoted BHP as a climate leader. 

The documents centre on the company’s Pilbara iron ore business, which generated $14.4 billion in pre-tax profit last fiscal year and accounts for more than one-third of BHP’s Australian emissions.

“Urgent decarbonization, in line with BHP’s public commitments, effectively underpins [the company’s] licence to operate, sustain and grow,” a 2023 document signed by BHP Australia president Geraldine Slattery said. The same memo warned that “slow emissions reduction progress” in the Pilbara carried “reputational impacts.”

The leaks reveal BHP halted a board-approved $400-million solar-and-battery project at its Jimblebar iron ore mine shortly after approval in 2023, citing “cash prioritization requirements.” A larger $1.3-billion renewable energy proposal — including solar, wind and battery infrastructure intended to support electric haul trucks and trains — was later shelved in its existing form, with funding documents showing no major spending planned before 2031.

At the same time, BHP purchased 62 new diesel trucks for Jimblebar after prices fell sharply, locking in fossil fuel use at the operation until at least the late 2030s and potentially 2041, the docuemnts show.

The company has said it remains committed to net zero emissions by 2050, but critics say delaying electrification in the Pilbara weakens the credibility of that target and complicates Australia’s broader emissions goals. 

Rival miner Fortescue (ASX: FMG) continues pursuing aggressive electrification and renewable energy plans in the region, despite industry scepticism about timelines and technology readiness.

 

Singapore Issues First Authorization for Ammonia Bunkering Trials

Itochu ordered the first ammonia bunker vessel which will start the bunkering trials in late 2027 (Itochu)

Published May 22, 2026 6:35 PM by The Maritime Executive

Singapore’s Maritime and Port Authority recently granted the first authorization for an ammonia bunker operation that will use ship-to-ship fuel transfers. The program is being developed by subsidiaries of Japan’s Itochu Corporation and will be used to fuel the newly built ammonia bulkers for the joint venture between Mitsui O.S.K. Lines and CMB.TECH.

Itochu reports that the authorization was granted following MPA’s review of comprehensive safety studies, risk assessments, and business plans for ammonia bunkering in Singapore developed by Itochu's Singapore-based subsidiary ZETA Bunkering. The authorization became effective on May 15, 2026, for a trial period up to two years, subject to MPA’s prevailing regulatory framework.

The companies ordered the first newbuild ammonia bunker vessel in June 2025, which is being built by Japan’s Sasaki Shipbuilding. The vessel, which will have a capacity of approximately 5,000 cbm of ammonia marine fuel, is expected to be delivered in September 2027.

Once the vessel is placed into service, the plan is to conduct the demonstration trials in conjunction with the MOL-CMB.TECH joint venture. The companies announced in March 2025 that they had agreed to joint ownership of three ammonia-fitted 210,000 dwt Newcastle bulk carriers. The vessels are being built at Qingdao Beihai Shipyard in China and will operate under a 10-year charter to MOL. The companies also placed an order at China Merchants Jinling Shipyard (Yangzhou) for a total of six chemical tankers. Two of the vessels will be ammonia-fitted on delivery, and the other four will be built ammonia-ready. CMB.TECH will own the vessels, which will operate under charter to MOL Chemical Tankers.

Singapore is at the forefront in the development of ammonia as an alternative marine fuel. The first-ever ship bunkering and trials were done under the authorization of the MPA for the Fortescue vessel, an offshore support vessel that was converted for ammonia operations. The test of the Fortescue vessel were conducted in early 2024, and the vessel was authorized for registration in Singapore.

Itochu says through these demonstrations and subsequent ammonia bunkering trial operations, it will work closely with MPA and other maritime stakeholders to develop infrastructure, technologies, and operational standards for ammonia bunkering that prioritize safety and environmental sustainability. Itochu will also formulate detailed implementation plans, conduct risk assessments, and establish emergency response measures, ensuring that safety and environmental protection remain paramount.

These trials will enable Itochu to establish safe and sustainable ship-to-ship bunkering operations using ammonia as marine fuel. It aims to commercialize the ammonia bunkering business in Singapore and at major maritime hubs worldwide.

 

Fortescue to pay $108M for Indigenous site damage

Cecilia Jamasmie | May 12, 2026 |  

The Solomon Hub is Fortescue’s flagship iron ore mine and production site. (Image courtesy of Fortescue)

Fortescue (ASX: FMG), one of the world’s biggest iron ore miners, must pay more than A$150 million ($108 million) to an Australian Indigenous group after a court found it it damaged culturally significant sites without consent while operating the Solomon Hub mine.

The Federal Court of Australia ruled the miner caused “significant damage” to the cultural heritage of the Yindjibarndi people in Western Australia’s Pilbara region, awarding A$150 million for cultural loss and A$100,000 (about $73,000) for economic loss. The Yindjibarndi Ngurra Aboriginal Corporation had sought as much as A$1.8 billion ($1.3 billion) in compensation. 

Judge Stephen Burley said the community held “deep and visceral” connections to the land and that “significant damage has been done to Yindjibarndi songlines and other areas of cultural heritage.”

“Fortescue accepts that the Yindjibarndi People are entitled to compensation,” a company spokesperson said in an emailed statement. The company noted it would review the court’s full reasons for the decision once published. 

Long-dragged out dispute

The dispute dates back more than two decades after the Yindjibarndi people filed a native title claim in 2003. Fortescue began mining before the matter was resolved and later fought the case in court after the Yindjibarndi secured exclusive native title rights in 2017 over a 2,700-sq.-km area rich in iron ore deposits.

Fortescue is the world’s fourth-largest iron ore producer, with executive chairman and founder Andrew Forrest building a multibillion-dollar fortune as China’s industrialization fuelled soaring demand for iron ore, the key ingredient in steelmaking.

The ruling marks one of the largest compensation awards under Australia’s native title laws and represents a significant ESG and legal setback for a major global miner. 

A spokesperson for the Yindjibarndi Aboriginal Corporation did not immediately respond to a MINING.COM request for comment.

 

Peru vote uncertainty jolts markets, mining sector

Staff Writer | May 12, 2026 

Arequipa is one of the most important mining regions in Peru. (Stock image by Nicolas Dumeige.)

Peru’s presidential election uncertainty is rattling investors and raising concerns over the future of billions in mining investment as leftist candidate Roberto Sánchez moves closer to a June runoff that could reshape the country’s business-friendly economic model.

Business confidence fell in April to its lowest level in almost two years, according to a Central Bank report published this month, while Peru’s bonds and currency have lagged regional peers in recent weeks. 

Investors fear Sánchez could pursue greater state intervention in key industries, increase taxes on miners and weaken investor protections through constitutional reform. 

Sánchez appears poised to face conservative Keiko Fujimori in the June 7 runoff after opening a 15,000-vote lead over right-wing rival Rafael López Aliaga with 99% of ballots counted. Electoral authorities are expected to confirm the final result this week following a review of contested ballots.

“There has been a sharp deterioration mainly driven by election uncertainty and fear of a radical shift in the way the country is governed,” former finance minister Luis Miguel Castilla told Bloomberg News. 

A runoff will take place June 7. (Image courtesy of Peru’s electoral body, ONPE.)

Polls show Sánchez and Fujimori running neck-and-neck ahead of the runoff, setting up a stark choice between greater state intervention and Peru’s traditional investor-friendly framework.

Billions at stake

The election comes at a pivotal moment for Peru’s mining industry, which has underpinned economic growth despite years of political upheaval in Lima. Mining investment reached about $6 billion last year and had been expected to rise further in 2026 amid strong copper and gold prices. 

Peru’s economy has expanded by roughly 3% annually since the pandemic, driven largely by mineral exports even as the country cycled through multiple presidents and recurring political crises.

The Andean nation remains the world’s third-largest copper producer and a major supplier of gold, silver and zinc. 

Mining accounts for about 60% of exports and anchors operations for companies including Glencore (LON: GLEN), Anglo American (LON: AAL), Freeport McMoRan (NYSE: FCX) and MMG. The country’s vast mineral wealth continues to attract investment despite the uncertainty. 

In March, Australia’s Fortescue (ASX: FMG) completed its C$139-million acquisition of Alta Copper and its Cañariaco project, an open-pit development expected to produce 140,000 tonnes of copper annually.

Analysts said Peru’s markets had largely become accustomed to instability after eight presidents since 2016. GEM Mining Consulting warns that a Sánchez victory could trigger a “strong adjustment” in the country’s bonds and currency. Barclays analysts have also turned underweight on Peru’s dollar bonds and recommended selling the sol against the US dollar.

Sánchez, a close ally of jailed former president Pedro Castillo, has pledged to redistribute wealth to rural communities, review mining tax agreements, rewrite Peru’s constitution and phase out open-pit mining, the dominant method used by nearly all of the country’s large mines.

He has also suggested using international reserves for social spending and criticized central bank governor Julio Velarde. Investors are also weighing fresh pressure on the mining industry, including proposed legislation to halve the amount of time companies can hold unused concessions and the revocation of Southern Copper’s (NYSE, LON: SCCO) long-delayed $1.8-billion Tía María project licence, which was restituted in April.

Illegal mining persists

The broader concern for investors is whether Peru’s next president can restore stability and contain the growing influence of illegal mining. Illicit operations are now believed to produce more gold than major formal miners, including Hochschild Mining (LON: HOC), Compañía de Minas Buenaventura (NYSE: BVN) and Newmont Mining (NYSE: NEM), underscoring the scale of the challenge facing the sector.

Former finance minister Castilla said any market selloff would likely be less severe than the capital flight that followed Castillo’s election five years ago because Peru now holds stronger international reserves and continues to benefit from robust demand for metals exports. Preliminary congressional results also suggest business-friendly lawmakers will maintain significant influence in Peru’s restored bicameral legislature, potentially limiting more radical policy shifts.

The runoff will determine whether Peru doubles down on investor-friendly policies or shifts toward greater state intervention, with billions in mining investment and one of Latin America’s most important resource economies hanging in the balance.

(With files from Bloomberg)

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Latin America is heading into 2026 with resources at the centre of a growing global power struggle, as governments and investors focus on who controls critical minerals and the supply chains behind them. If the region matters to you, don’t miss MINING.COM’s new series tracking the geopolitical forces reshaping it and why markets are increasingly driven by global alliances as much as local politics.

Countries in the series so far:

• Argentina
• Bolivia
• Colombia
• Chile

 

First Commercial Bunkering of Ammonia Completed on Exmar Ship in Ulsan

Exmarr's gas tanker Antwerpen completed the world's first ammonia bunkering for a commercial, ocean-going vessel docked at the Port of Ulsan, South Korea (Ulsan Port Authority)

Published Apr 28, 2026 8:09 PM by The Maritime Executive

The emerging market for ammonia-fueled commercial shipping achieved its next milestone with the first-ever port-to-ship bunkering on an ocean-going vessel. Previously, the only bunkering had been done as demonstrations, while extensive work has been underway by port authorities, classification societies, and others to develop the processes for safely handling highly toxic ammonia as a marine fuel.

The Ulsan Port Authority (UPA) in South Korea announced that the first ammonia bunkering operation had been carried out on April 23. The gas tanker Antwerpen, built by HD Hyundai as the first in a series of vessels for Exmar, achieved the milestone.

The bunkering operation took place at Pier 2 of Ulsan Main Port, where Lotte Fine Chemical, designated as the sustainable marine fuel supply demonstration operator, supplied approximately 600 tons of clean ammonia via the port-to-ship method. 

“This world-first ammonia bunkering operation was made possible by Ulsan Port’s advanced energy infrastructure and accumulated bunkering expertise,” said Byun Jae-young, President of UPA. “It is a meaningful milestone that demonstrates the port’s readiness to support a range of major sustainable marine fuels.
 
To enable this milestone, the Ulsan Port Authority reports it signed a Memorandum of Understanding in January 2024 to promote the ammonia bunkering industry. Since then, it has worked closely with key stakeholders across the ammonia value chain, including Korean Register (KR), Lotte Fine Chemical, HD Hyundai Heavy Industries, and HMM, covering policy and regulation, port infrastructure, vessel readiness, and fuel supply.

The 46,000 cubic meter gas carrier continues to mark milestones in the development of this new segment. The ship was ordered in 2023 and named during a ceremony earlier in April at the HD Hyundai shipyard. It measures 190 meters (623 feet) in length and was specifically designed for the transport of liquefied gas cargoes, including ammonia and LPG. It can also use its cargo, including the ammonia, as its fuel.

The Antwerpen remains on the dock in Ulsan while her sister ship, Arlon, is completing sea trials. The second ship is scheduled to be delivered to Exmar in June.

To prepare for the bunkering, Lotte Fine Chemical announced in March that it had completed the world’s first commercial import of green ammonia. It was the first cross-border trade of green ammonia. The imported green ammonia was entirely produced using 100 percent renewable energy (wind and solar power) at the world’s largest green hydrogen and ammonia production complex developed by Envision and located in Inner Mongolia, China.  

Lotte developed storage capabilities for the green ammonia at the Port of Ulsan. It said that it planned to use it to meet the growing demand for carbon-free energy applications, including ammonia marine bunkering, co-firing power generation, and as a hydrogen carrier.

The first ammonia bunkering for a vessel took place in Singapore in early 2024 and involved three tonnes of liquid ammonia loaded from Vopak’s Banyan Terminal on Jurong Island in Singapore. It was placed aboard Fortescue’s converted offshore supply vessel, which was rechristened Fortescue Green Pioneer and began ammonia demonstration in 2024. The only other vessels currently able to operate on ammonia are two tugboats, with Japan also reporting ammonia bunkering from tank trucks to NYK’s Sakigake, a tug that was converted from LNG to ammonia as part of an ongoing demonstration of the future marine fuel.

 

After BHP, China’s CMRG close to iron ore deal with Fortescue

Bloomberg News | April 27, 2026 | 

Iron ore mining site operating in Nanutarra, Western Australia. Credit: Fortescue

Fortescue Ltd is close to signing a supply agreement with China’s state-backed iron ore buyer, according to a person familiar with the matter, following a BHP Group deal that drew a line under months of talks.

Fortescue, currently in talks, is expected to finalize its long-term settlement with China Mineral Resources Group in the coming months, the person said, asking not to be named as the information is not public. Fortescue is currently operating under short-term agreements that have been extended while the negotiations continue, the person added.

CMRG and Fortescue did not immediately respond to emailed queries.

BHP — which has been locked in a months-long standoff with CMRG over iron ore sales — confirmed last week that it had struck a deal. The world’s largest miner did not provide details on terms and conditions, but the announcement has prompted traders and investors to look for other settlements.

On an analyst call on Friday, Fortescue executives said they had traveled to China earlier that week and met with CMRG. Asked how the miner’s relationship with CMRG might work after a long-term deal is reached, sales and marketing director Ben Kuchel said it was too early to specify the future routine for negotiations.

Bloomberg reported in December that Fortescue and Rio Tinto Group had agreed to extend existing supply agreements with CMRG.

Talks between miners and CMRG have hinged on key issues including pricing benchmarks. Fortescue has already shifted to using an average of China’s Mysteel index and the Argus Iron Ore Index for its products, while its higher-grade Iron Bridge concentrate is priced against the Platts 65% index, according to a presentation from the CMRG research institute in March.

China’s state iron ore buyer allows purchases of banned BHP portside cargoes

Reuters | April 28, 2026 |

Photo courtesy of Pilbara Ports.

China’s state iron ore buyer has lifted its ban on purchases of certain BHP ore products that had piled up at ports, four sources with knowledge of the matter said on Tuesday.

BHP Group, the world’s third-largest iron ore supplier, and state buyer China Mineral Resources Group (CMRG) have concluded a contract negotiation that ended a months-long ban on purchases of the company’s iron ore, BHP said last week. 

The ban was lifted for mainly seaborne products and its removal followed a visit by BHP executives.

Steelmakers can now buy and take delivery from ports previously frozen BHP products such as Jimblebar fines – a type of medium iron ore – after submitting a report to CMRG, said the sources, speaking on condition of anonymity.

Traders also were notified that they could sell their Jimblebar fines at ports, said one of the sources.

The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade down 1.02% at 779.5 yuan ($114.18) a metric ton.

Last September, CMRG banned purchases of BHP’s Jimblebar fines, followed by the miner’s Jinbao fines last November and Newman fines in March.

Jimblebar fines stocks at 15 major Chinese ports were 8.69 million tons as of April 22, 382% higher than in late September, two separate traders with knowledge of the matter said last week.

CMRG and BHP did not immediately respond to Reuters requests for comment.

($1 = 6.8271 yuan)

(Reporting by Reuters staff; Editing by Kim Coghill and Christian Schmollinger)