After more than half a year of negotiations, the annual long - term agreement negotiation on iron ore between BHP and China Mineral Resources Group (CMRG, hereinafter referred to as "China Mineral") has finally been finalized. On April 22, BHP announced this news in its quarterly production and sales report. It is understood that the two sides reached a preliminary agreement in mid - April, and downstream enterprises began to report to China Mineral the demand for BHP's long - term agreement contracts in May. According to reports, the most significant change in the negotiation results is that spot indexes denominated in RMB will be included in the pricing of long - term agreement contracts, including the iron ore port spot price index (hereinafter referred to as the "BTI Index") released by the Beijing Iron Ore Exchange, which has overall increased the reference proportion of domestic index institutions. The quantity of the long - term agreement negotiated on behalf of China Mineral will be agreed upon, and the pricing will be based on the iron ore price index. Thus, BHP has become the first enterprise among the "Big Four (Vale, Rio Tinto, BHP and Fortescue)" to adopt the BTI Index in its long - term agreement. Another major change in this long - term agreement is the expansion of the price discount range. It is reported that BHP offers a 1.8% discount to major customers in the negotiation represented by China Mineral, as well as large - ship discounts and freight rebates. The 1.8% discount is similar to a rebate, which will be returned after the annual contract is executed. Compared with the possible price rebates in previous long - term agreements, this proportion has increased significantly. It is reported that the game over the annual long - term agreement on iron ore between China Mineral and BHP escalated since September 2025. Despite several rounds of negotiations, an agreement has not been reached, and the game has continued to escalate until now.

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