These remarks come after Bloomberg News reported that China Mineral Resources Group (CMRG), a state-operated iron ore trading company, has advised local steel mills to cease purchasing any seaborne iron ore shipments from BHP that are priced in dollars.

“I am concerned about that and what we want to make sure is that markets operate properly, and of course, we have seen those issues in the past,” Albanese remarked.

At the opening of trading on the ASX today, shares in BHP fell 1.5 per cent.

The move by CMRG comes as contract talks between the Australian miner and Chinese buyers stall.

CMRG was established to enhance China’s influence in the global iron ore market, signifying Beijing’s continued efforts to have greater control over prices.

Iron ore plays a crucial role in steel manufacturing, and China’s demand for it has significantly contributed to Australia’s economic success, constituting up to 5% of the nation’s gross domestic product.

Last financial year, iron ore exports were worth about $138 billion.

BHP is the world’s biggest listed mining company and is a major player in the Australian share market.

A spokesperson for BHP said the company couldn’t comment on commercial arrangements.

Last month, the mining giant said its annual profit dipped to the lowest in five years amid slowing demand from China-impacted iron ore prices.