BHP has reached an agreement with China Mineral Resources Group, the state-owned purchasing agency that controls most of China's metals imports, ending months of negotiations. The deal, which runs through 2027, resolves a key uncertainty for the Australian mining giant after Chinese steel mills were barred from purchasing some of its iron ore. Mike Henry, BHP's outgoing CEO, and incoming leader Brandon Craig traveled to China this month to finalize the arrangement.

Iron ore shipments from BHP's Jimblebar mine, the grade targeted by China Minerals Resources, almost halved in the third quarter compared to the second quarter. While that grade declined, BHP's overall iron ore production rose 2% thanks to stronger performance at other mines. JPMorgan analysts called the deal a "key positive" given solid iron pricing during the quarter. The results marked Henry's final quarterly report after running the world's largest mining company since 2020.

BHP shares rose nearly 1% in Sydney following the announcement and have gained over 22% this year, valuing the company at A$284bn. The company's copper production is expected to hit the upper end of guidance, supporting Henry's growth strategy. Despite global uncertainty and supply chain disruptions from Middle East conflict affecting diesel and sulphuric acid supplies, BHP's low-cost operations and strong balance sheet have positioned it advantageously in the current market.