By Clancy Yeates,Nick Toscano
Copyright theage
Mining giant BHP continues to load iron ore onto huge bulk carriers bound for ports in China despite lingering uncertainty over whether Beijing has instructed steelmakers to suspend deliveries from the company.
Melbourne-based BHP, the largest Australian miner, has declined to confirm or deny reports that China’s state-owned iron ore buyer has instructed steel mills not to strike new dollar-denominated purchase deals for BHP iron ore, including for cargoes that have already left Australia.
The reports come amid tense negotiations between China and BHP about prices for iron ore, the key raw material that is turned into steel inside giant blast furnaces. Iron ore is Australia’s most valuable export commodity, worth more than $100 billion of annual revenue, and China is the biggest buyer of it by far, meaning any disruption would leave a major dent in state and federal government coffers.
But shipping data and industry sources on Thursday confirmed BHP was still loading tonnes of iron ore onto vessels docked at Western Australia’s Port Hedland and destined for China, adding to the belief among some mining industry experts that it may be “business as usual” for the ASX-listed miner.
