(Yicai) Nov. 6 -- Major international iron ore miners are very confident about China’s long-term demand for the main raw material used in steelmaking, despite short-term challenges, according to executives attending the seventh China International Import Expo. They are also looking to form deeper partnerships with Chinese clients.

BHP Group remains optimistic about China’s stable economic growth and sustained demand for resources, particularly in light of recent stimulus policies, Rag Udd, chief commercial officer of the Australian mining and metals company, told Yicai at the trade fair which opened in Shanghai yesterday.

Bold Baatar, chief commercial officer at London-based Rio Tinto, noted China’s better-than-expected economic resilience, predicting sustained high long-term demand for steel in the Chinese market due to solid fundamentals.

Xie Xue, president of Vale China, pointed to the expectation that China’s urbanization rate will climb to 80 percent or even levels seen in developed countries from the current 66 percent, supporting long-term growth in housing demand. That, along with industrial growth and manufacturing upgrades, will continue driving demand for steel and iron ore, she added.

International mining giants now view their relationships with Chinese customers as extending beyond the mere supply of raw materials and are establishing deeper partnerships with clients and other partners.

Rio Tinto, for example, revealed at the CIIE for the first time the progress made with its Simandou project in Guinea, one of the world's largest iron ore deposits, whose investors include China Baowu Group, the planet’s biggest steelmaker, and aluminum behemoth Aluminum Corporation of China, also known as Chalco.

Baatar told Yicai that Baowu and Chalco not only contributed funding but also helped by introducing high-quality suppliers and engineering contractors.

China has become BHP’s largest market and an increasingly important source of production equipment and raw materials, Udd said, noting that the company has established a procurement center in China to source mining equipment and essential consumables.

Dino Otranto, chief executive of Fortescue Metals, pointed out that China is not only a key market but also a valuable partner as the Australian firm advances its decarbonization goals.

Fortescue has signed a memorandum of understanding with Baowu to explore low-carbon smelting technologies. Similar low-carbon initiatives are underway between BHP, Rio Tinto, Vale, and their Chinese partners, underscoring a shared commitment to environmental goals.

Editors: Tang Shihua, Emmi Laine