{"text":[[{"start":7.74,"text":"One of Australia’s largest mining companies has warned that it could slow iron ore production unless negotiations with China’s state-backed commodities buyer are concluded by the end of the year."}],[{"start":17.76,"text":"Fortescue, the miner founded by billionaire Andrew “Twiggy” Forrest, has been in talks with China Mineral Resources Group this year to strike a deal to continue supplying iron ore to Chinese steel mills."}],[{"start":29.14,"text":"Pressure increased in July when reports emerged that CMRG, which plays a central role in channelling commodities to China, had ordered companies to stop buying some low-grade products from the Western Australian business."}],[{"start":40.88,"text":"Fortescue, which dubbed CMRG as the “key risk” to the iron ore sector last year, said on Thursday that its production and financial guidance were dependent on striking a deal with the Chinese group."}],[{"start":53.44,"text":"“If negotiations with CMRG are not concluded by calendar year-end, operations may be affected,” the Australian company said after releasing its third-quarter production numbers."}],[{"start":63.36,"text":"Agustín Pichot, the former Argentine rugby player who is Fortescue’s chief executive of growth and energy, said on an analyst call that talks with CMRG remained confidential. “We’re doing everything we can to ensure we’re taking care of our shareholders,” he said."}],[{"start":78.2,"text":"One analyst asked on the call whether the company should just “wear” lower prices for iron ore to strike a deal. Dino Otranto, chief executive of Fortescue’s metals business, replied: “Is that in the best interests of the industry in the long term? Is that in the best interests of Australia in the long term?”"}],[{"start":94.84,"text":"China has been the profit engine for Australia’s largest miners including BHP, Rio Tinto and Fortescue over the past decade as iron ore demand tracked its booming economy and property market."}],[{"start":105.52,"text":"The FT reported this year that CMRG had started to flex its muscles in price negotiations. Industry executives and governments were concerned that the group, which has a mandate closely tied to Chinese leader Xi Jinping’s quest for resource security, could extend its buying power to exert a tighter grip over other commodities."}],[{"start":122,"text":"Natural resources analysis group Wood Mackenzie said in a report released on Thursday that CMRG was shifting from a centralised purchasing role to a potential force in the way global iron ore prices are set, seeking to capture transaction data and shape benchmark references."}],[{"start":138.96,"text":"BHP held protracted talks with CMRG, which barred some of the Australian company’s grades from being sold in China during negotiations, until a deal was struck in April on unspecified terms."}],[{"start":152,"text":"That followed interventions by Australia’s prime minister and a top-level visit by BHP chief executive Brandon Craig to China in April, shortly after he was appointed."}],[{"start":162.76,"text":"Rio Tinto, which is also in talks with CMRG, told the FT it had a “long and successful relationship” with customers in China and did not comment on “confidential commercial negotiations”."}],[{"start":175.16,"text":"Fortescue shares fell 3 per cent in morning trading in Sydney, bringing the decline this year to more than a third."}],[{"start":181.48,"text":"The company warned last month of a drop in sales in its September quarter to 42.9mn tonnes, almost 4mn tonnes lower than shipments, reflecting the impact of ongoing negotiations with CMRG."}],[{"start":194.88,"text":"Fortescue also said that inventory was expected to increase by between 4mn and 5mn tonnes this month, with adjustments to production possible if a CMRG deal was not reached this year."}],[{"start":206.76,"text":"Executives told analysts that the company was looking at ways to preserve cash before moving to curtail production."}],[{"start":213.48,"text":"“Fortescue continues to engage with CMRG and remains focused on good faith negotiations grounded in fair and proper market practices,” the company said."}],[{"start":227.16,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1792645897_7100.mp3"}