Australian iron ore miners may lose more than $10 billion of earnings over the next decade after being forced into deals with China’s central purchasing agency, with the federal government warning it may intervene in trade discussions given the hit to the federal budget.
Iron ore is Australia’s most lucrative export industry worth $123 billion last year, but China has centralised more than 80 per cent of its procurement activities in the China Mineral Resources Group (CMRG) in a bid to lower iron ore prices.
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