Fortescue chair calls for fair negotiations with China

Fortescue

27/07/2026 06:09

MELBOURNE, July 27 (Reuters) - Fortescue FMG.AX founder Andrew Forrest called for China and Australia to "always negotiate fairly," at an event in Perth on Monday, as the world's fourth-largest iron ore maker negotiates annual supply terms with its biggest customer. 
Global iron ore miners have faced increasing resistance from China's state iron ore buyer, China Mineral Resources Group (CMRG) in annual supply talks over the past year as China seeks better terms for its steelmakers. 
Measures by CMRG have included restricting China's vast network of steel mills from buying certain iron ore products from miners while negotiations were underway.    
"Bilateral trade has supported Australian jobs, businesses, and public services, and also provided China with a secure and reliable supply of iron ore that drove its extraordinary, unprecedented, historic, and industrial growth," Forrest, who is also Fortescue's executive chair, told the Boao Forum Perth, an offshoot of the larger Boao Forum for Asia.
Australia is the world's top iron ore producer, accounting for some 53 percent of global supply. It expects iron ore export earnings to fall to A$108 billion ($75.57 billion) in the 2026-2027 financial year from A$117 billion last year as global supply rises.
The "shining light of partnership" should encourage Australia, China, and also Gabon, where Fortescue is building more iron ore operations, to "grow together," he said. 
"Let's always negotiate fairly... true partnerships are built on a partnership of the future."
CMRG notified China's domestic steel mills in early July that from July 15 they must not take delivery of Fortescue's Super Special Fines product held at ports.
($1 = 1.4292 Australian dollars)

(Reporting by Melanie Burton; Editing by Kate Mayberry)
((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals; +613 9286 1421; Reuters Messaging: melanie.burton.thomsonreuters.com@reuters.net/))