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October 6, 2025
Madeleine King said the reported ban of BHP’s iron ore was nothing “particularly unusual”, and described the impasse as the two parties “working through a commercial arrangement”.
“The iron flows are still continuing; whilst it’s important, as always, that there are no trade impediments, I’m confident there are not,” she said on the sidelines of a conference in Perth.
The opposition has criticised the Albanese government for its “hands-off” approach to Beijing’s reported decision to ban its steel makers from buying the miner’s iron ore shipments, in an escalation of an arm-wrestle over how prices for the commodity are determined.
BHP has refused to confirm or deny the blockade’s existence, or comment on the scuffle. Data from tracking websites shows that BHP vessels continue to ship ore from Port Hedland to hubs in China, although cargo ships can be re-routed to alternative destinations mid-transit.
Australia exports more than $100 billion of iron ore annually, the bulk of which is bought by China’s steel makers to construct the Asian powerhouse’s buildings, bridges and roads.
Taxes and royalties flowing from iron ore exports are critical to filling government coffers, with Australian Taxation Office data showing that BHP and rival Rio Tinto were the two biggest corporate taxpayers for 2023-24, contributing $6 billion and $6.3 billion respectively.
Through the state-run China Mineral Resources Group, China’s centralised buyer for iron ore, Beijing has engaged in what analysts have called “sabre-rattling” over future pricing contracts with BHP and threatened the miner’s exports.
King said she was unsure whether the reported ban was a “one-off”, but the media reports were “probably making more of it than is actually there”.
“When you think of the magnitude of the Chinese bureaucracy, you can see little things happen here and there, which is no one’s fault in particular, it’s just one of those negotiation things that is sometimes difficult,” she said.
She described coalition calls for the government to intervene as “an overreaction to what’s going on”.
Opposition finance spokesman James Paterson last week said Australia should “back BHP in this fight” and the Albanese government “should use the access that they so often boast about to intervene and ensure that a fair negotiation on commercial terms occurs.
“I’m concerned that this isn’t a strictly fair commercial negotiation, that leverage is being applied, and the Australian government should back Australian companies and Australian exporters if there is that kind of untoward coercion happening,” Paterson said.
Geraldine Slattery, BHP’s Australian boss and the frontrunner to replace Mike Henry as the miner’s next chief executive, did not comment on the China issue when speaking at the same conference attended by King.
Slattery did, however, praise Australia’s relationship with Japan, China’s Asian rival, and highlighted the stability of the business ties between Tokyo and Canberra.
“In Australia, we are living in a time of so much volatility and uncertainty, in terms of trade. We are all needing to make business decisions within but also in terms of market access: what does the future look like, not just next year, but in 10 years, in 20 years?” she said. “I think that’s what’s valuable about the partnership with Japanese partners and entities.”
Japan is BHP’s second-largest market behind China.
Irish-born Slattery, a three-decade veteran of BHP, has been tipped as the miner’s next leader when Henry steps down – a move that is expected to occur in mid-2026.
She spoke onstage alongside Kenichi Hori, chief executive of Japan’s Mitsui, which is a business partner with BHP in iron ore. The Japanese group this year paid more than $8 billion for a 40 per cent stake in Rio Tinto’s Rhodes Ridge iron ore project, underlining its commitment to WA’s Pilbara region.
The purchase, from descendants of legendary WA explorer Peter Wright, secured the Japanese group guaranteed reserves of the steel-making ingredient.