Shifting Ground in Iron Ore Trade

A major shift is underway in the global iron ore trade, and it’s one that could ripple across Australia’s mining and infrastructure sectors. 

In 2025, BHP, one of Australia’s biggest miners, entered high-stakes negotiations with China Mineral Resources Group (CMRG), China’s state-backed iron ore buyer. At the centre of discussions are three key issues: pricing, trade terms, and currency settlement. 

What’s Going On? 

CMRG was set up by China to consolidate its iron ore purchasing power. It’s now negotiating with BHP to secure lower prices – reports suggest BHP is asking around US$110 a tonne, while CMRG is aiming for closer to US$80. 

As part of the standoff, China has temporarily restricted some BHP iron ore shipments (including Jimblebar fines), but trade hasn’t stopped completely. Other products are still being exported, and shipping data shows vessels continue to move between Australian ports and China. 

Perhaps the most interesting development? About 30% of BHP’s iron ore sales are now being settled in Chinese yuan (RMB) instead of US dollars, a sign of shifting trade dynamics and growing Chinese influence in global commodities. 

Why It Matters 

While this might sound like business as usual in the global resources market, the implications for Australia’s mining and infrastructure sectors could be significant. 

• Pricing Pressure: If lower iron ore prices become the norm, mining companies may need to find efficiencies or rethink capital investment plans. 

• Diversification Push: The standoff may accelerate efforts to find new customers and markets beyond China. 

• Currency Shifts: The gradual move toward RMB settlements adds a new layer of financial complexity and risk for exporters. 

  
  

The Infrastructure Connection 

For Australia’s civil and infrastructure sectors, developments like these aren’t just economic headlines, they shape project pipelines and workforce demand. 

• Ports and Logistics: Maintaining efficient, high-capacity ports is critical to handle changing export volumes and grades. 

• Rail and Road Networks: Reliable connections between mines and ports keep exports moving and costs under control. 

• Mining Support Infrastructure: As miners look to diversify or upgrade operations, there’s likely to be continued demand for engineering, construction, and maintenance expertise. 

The BHP–CMRG negotiations are still playing out, but they serve as a reminder of how interconnected Australia’s resources, infrastructure, and workforce ecosystems really are. 

Changes in trade relationships today will help determine where, how, and what kind of infrastructure gets built tomorrow.