According to multiple informed sources, in order to end a seven-month-long supply deadlock with China, global mining giant BHP Billiton PLC has agreed to adopt a Chinese yuan-denominated spot index for its long-term iron ore supply contracts.

The prolonged negotiations over iron ore supply agreements between Australia and China have officially concluded. These talks, which began in late August 2025, involved multiple rounds of discussions on core issues such as the pricing benchmark and settlement methods. China is the world's largest importer of iron ore, and approximately 86% of BHP Billiton PLC's iron ore production is sold to China. Previously, China had suspended purchases of some products from BHP Billiton PLC following a breakdown in negotiations.

A core breakthrough lies in the reform of the pricing mechanism. The agreement indicates that BHP Billiton PLC will use a weighted average of four indices to price its flagship product "Jimbubar Fines." For the first time, this includes the "Northern Iron Ore Index," a yuan-denominated spot price published by the Beijing Iron Ore Trading Center, which carries a significant weighting of 26%. The remaining weight is shared by US dollar and spot indices from providers like Argus and Shanghai Steelhome. This move breaks from the previous practice of solely anchoring prices to the Platts index and marks a crucial step for China in its efforts to gain more influence over global iron ore pricing.

In addition to adopting the yuan index, informed sources revealed that BHP Billiton PLC is offering its major clients a cargo rebate of approximately 1.8% and additional freight discounts. Under the new settlement mechanism, the proportion of transactions settled in Chinese yuan has increased substantially to over 50%, which is expected to effectively reduce exchange rate risks and procurement costs for domestic steel enterprises.