According to reports citing anonymous sources, the China Mineral Resources Group (CMRG) has instructed a selection of Chinese steel mills to halt or delay new negotiations with the global mining company Rio Tinto. The directive, which reportedly takes effect in September, appears to be an attempt by the state-backed entity to centralize and exert greater control over the procurement of iron ore, a critical raw material for China's massive steel industry.

Rio Tinto, one of the world's largest iron ore producers, has not issued a formal public statement regarding these specific instructions. The CMRG was established by the Chinese government to act as a unified buyer, aiming to increase China's bargaining power against major global miners. By coordinating the purchasing power of various steel mills, the group hopes to influence global pricing and secure more favorable terms for domestic producers.

While the exact scope of the order remains unclear, industry analysts suggest this could signal a more aggressive stance in China's long-standing effort to reduce its dependence on foreign suppliers and stabilize input costs. The move comes at a time when the Chinese steel sector is grappling with fluctuating demand and economic pressures. It remains to be seen how Rio Tinto will respond to this potential disruption in its negotiation process and whether other major miners will face similar directives from the CMRG in the coming months.