Fortescue Warns Unresolved China Talks Could Prompt Production Adjustments

Fortescue warned unresolved talks with China Mineral Resources Group could affect its operations, including possible production adjustments, if negotiations are not concluded by calendar year-end, while leaving its FY27 shipment guidance unchanged.

The Australian miner sold 42.9 million metric tons in the September quarter, 3.9 million metric tons below the 46.8 million metric tons it shipped. Fortescue linked the gap to ongoing negotiations with CMRG and expected product inventory to rise by another 4 million to 5 million metric tons in October 2026.

Shipments were down 6% from the year-earlier quarter. The period also included planned major maintenance at port operations, with shutdowns for inload and outload activity.

Fortescue kept its FY27 shipment guidance at 197 million to 207 million metric tons, including 11 million to 14 million metric tons from Iron Bridge. The outlook remains subject to the CMRG negotiations.

“We are discussing with CMRG because we just want to make sure that the fair market practices are in place,” Fortescue Growth and Energy CEO Gus Pichot said on an investor call.

CMRG had also told some steel mills it reached an iron ore supply deal with Rio Tinto, but its verbal notice did not specify the amount of ore involved. Fortescue’s warning centers on whether its talks with CMRG are concluded by calendar year-end.