Anglo American Plc has reached a year-long agreement to supply iron ore to China’s state-backed buyer, joining BHP Group among major miners that have secured deals with the country’s centralised procurement group.

Kumba Iron Ore, the South African producer, part of Anglo American and led by CEO Mpumi Zikalala, agreed to supply China Mineral Resources Group Co. (CMRG) from April 1, 2026, through March 31, 2027, according to a person familiar with the matter.

The agreement does not cover ore from Anglo American’s Minas-Rio project in Brazil, which is not sold to China under long-term contracts, the person said, asking not to be identified because the details are confidential.

Deal covers Kumba’s ore

Kumba confirmed during an earnings call in late July that it had reached an agreement with CMRG, but did not disclose the duration or commercial terms.

Two people familiar with the deal said it covers about 10 million metric tons of iron ore for CMRG member steel mills.

Kumba sold 18.6 million tons of iron ore in the first half of 2026, with China accounting for 54% of those sales. The company sold about 37 million tons of iron ore in 2025, according to its results.

Kumba’s products are valued for their relatively high iron content, which can help steelmakers improve efficiency and reduce the amount of impurities entering the production process.

Anglo American’s global head of sales and trading, Ebrahim Dadoo, said the company sells about 54% of its output into China. Some of those volumes are sold through spot transactions and long-term agreements outside CMRG, meaning the new contract represents only a small portion of Anglo’s overall portfolio.

“We’ve had very constructive engagements with CMRG, we’ve got an agreement in place with them as of the first of April,” Dadoo said during the July 28 earnings call.

A spokesperson for Anglo American declined to comment further. CMRG did not immediately respond to a request for comment.

Miners face tougher negotiations

The agreement comes as the world’s biggest iron ore producers face more complex negotiations with CMRG, which represents more than half of China’s steelmakers in procurement talks with international miners.

BHP spent months negotiating before reaching a year-long agreement with CMRG that included greater use of the yuan in pricing. Fortescue is also in discussions with the Chinese buyer.

For the miners, the next test will come when the current contracts expire and negotiations begin again. CMRG’s growing role in procurement gives Chinese steelmakers a stronger position when seeking better pricing and other concessions from major suppliers.

Anglo American spans key global mining markets

Founded in 1917, Anglo American is one of the world’s largest diversified mining companies, with operations spanning copper, iron ore, platinum group metals, steelmaking coal and crop nutrients across Africa, the Americas and Australia.

The company reported first-half 2026 revenue of $9.93 billion, an 11% increase from a year earlier. Underlying EBITDA rose 35% to $4 billion, with copper contributing $2.9 billion and iron ore generating $1.2 billion.

Kumba, a leading supplier of high-quality iron ore to the global steel industry operates mainly in South Africa’s Northern Cape province, with its headquarters in Rosebank, Gauteng, and an export operation at Saldanha Bay in the Western Cape. Its customers include steelmakers in China, Japan and Europe.

In July, Kumba subsidiary Sishen Iron Ore Company signed a 20-year Energy Offtake Agreement with Envusa Energy to secure solar power from a new on-site photovoltaic facility.

CMRG, established with 20 billion yuan ($3 billion) in capital, was launched in July 2022 in Xiong’an New Area. The state-owned company was established in 2022 to centralize iron ore procurement for major Chinese steelmakers and strengthen their bargaining position with global suppliers.