Anglo American has struck a year-long supply agreement with China’s state-backed iron ore buyer, securing access to the world’s largest market for the steelmaking commodity.

The deal, which took effect on April 1 and runs through March 31, 2027, covers iron ore from Anglo’s South African subsidiary Kumba Iron Ore. Two sources familiar with the matter put the contract volume at around 10 million metric tons. The agreement does not include ore from Anglo’s Minas-Rio project in Brazil.

Kumba Iron Ore sold approximately 37 million tons of its higher-grade product in 2025. China accounts for about 54% of Anglo’s total iron ore output, though the company sells to the country through multiple channels including spot sales and other long-term contracts.

Anglo American’s global head of sales and trading, Ebrahim Dadoo, confirmed the agreement during a July 28 earnings call.

“We’ve had very constructive engagements with CMRG, we’ve got an agreement in place with them as of the first of April, and that does impact our products that we sell to CMRG member mills,” Dadoo said.

The China Mineral Resources Group, or CMRG, was established in 2022 to consolidate purchasing for China’s steel industry and strengthen Beijing’s bargaining power against global mining companies. The group represents more than half of China’s steelmakers in procurement negotiations.

Anglo now joins BHP Group among major miners that have finalised agreements with the state buyer. BHP faced months of tense negotiations and restrictions on some cargoes before reaching its deal in April. Fortescue, by contrast, remains locked in difficult talks with cargoes reportedly held up as negotiations stalled.

Kumba’s iron ore, produced at its Sishen and Kolomela mines in South Africa’s Northern Cape, has an average iron content of about 64%. The premium quality of the ore has strengthened the company’s negotiating position.

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