Australia's Prime Minister Anthony Albanese expressed concern over reports that China has halted iron ore imports from BHP amid ongoing pricing negotiations. He emphasized the need for a swift resolution to the issue, which he believes is crucial for both nations' economies.

Bloomberg reported that China's state iron ore buyer instructed steelmakers to pause purchases from BHP as negotiations over pricing continue. However, Chinese commodity analysis firm Mysteel later contradicted this claim, stating that no such order had been issued by the China Mineral Resources Group (CMRG), which was established by Beijing to consolidate purchasing power and manage iron ore prices.

Albanese addressed the situation on Wednesday, recalling previous instances of economic coercion directed at the former Morrison government. "I am concerned about that and what we want to make sure is that markets operate properly. Of course, we have seen those issues in the past," he said. He added that it is vital for Australian iron ore to be exported to China without obstacles, highlighting its significance to both economies.

The Prime Minister suggested that the reported ban might be a tactic by CMRG to gain leverage in negotiations with BHP. "These measures are always disappointing. Let's hope, certainly, that they are very much short-term," he stated. "Sometimes when people are negotiating over price, sometimes these things will occur. I want to see this resolved quickly."

Following the reports and Albanese's comments, BHP's shares fell by 1.1 percent to $42.05 at the start of trading on the Australian Securities Exchange. A spokesperson for BHP declined to comment on the ongoing negotiations. The ABC has reached out to CMRG and China's Commerce Ministry for their perspectives on the matter.

Earlier this year, BHP announced a reduction in exploration spending due to a decline in annual profits, which was partly attributed to decreased demand from China affecting iron ore prices. Treasurer Jim Chalmers also described the reports of the ban as "concerning" and indicated that he would discuss the situation with BHP's chief executive, Mike Henry.

"Ultimately though, they are about the commercial arrangements between two companies and so in one respect, it's a matter for the company to work through," Chalmers noted. He assured that the government would approach the issue "calmly and carefully" while advocating for Australian interests.