BHP Group Ltd., the world’s largest mining company, confirmed that its annual iron ore sales negotiations with China are ongoing, while emphasizing that the miner continues to maintain a strong working relationship with its long-standing Chinese partners.

Speaking at the company’s annual shareholder meeting, Chair Ross McEwan addressed recent media reports suggesting a stalemate between BHP and China’s state-run iron-ore buyer over pricing and settlement terms. McEwan said there was “little he could say” about the confidential talks but reassured investors that discussions remain part of BHP’s regular commercial process.

“We have had relationships in China now for decades,” McEwan said. “We have a pretty good working relationship, but this is a commercial negotiation that's going on, as it does every year.”

Stable Production, Strong China Ties

McEwan also highlighted that BHP’s first-quarter iron-ore production was broadly in line with the same period last year, reflecting stable output from its vast Western Australian operations — one of the world’s largest sources of iron ore.

The negotiations come at a time when Chinese steelmakers are reportedly urging major miners to increase iron ore transactions in yuan instead of the U.S. dollar, aligning with Beijing’s broader push to internationalize its currency and reduce dollar dependency in commodity trade.

Currency Composition of Sales

Responding to shareholder questions, BHP Chief Executive Mike Henry said that less than 10% of the company’s total sales are conducted in currencies other than the U.S. dollar.

“Most of those sales are ore sold directly at Chinese ports and settled in yuan,” Henry noted, adding that such transactions represent “a pretty standard industry practice.”

Context and Outlook

BHP’s negotiations with China are closely watched across the commodities sector, as the country remains the world’s largest iron ore importer and the miner’s single biggest customer base.

Analysts expect that while pricing discussions may be complex given recent steel output curbs and currency policy shifts, the long-term partnership between BHP and China is unlikely to face disruption.

With global steel demand stabilizing and infrastructure investment in China showing signs of gradual recovery, BHP’s diversified portfolio and strong cost position are expected to keep it well-positioned through 2025, even amid evolving trade dynamics.