Prime Minister Anthony Albanese said today he was concerned about reports BHP, Australia’s biggest mining company, has been temporarily banned from exporting iron ore to China.

He was speaking amid reports by Bloomberg News that state-run iron ore trader China Mineral Resources Group (CMRG) urged local mills to temporarily pause purchases of any dollar-denominated seaborne iron ore cargoes from BHP.

“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 said.

“I want to see Australian iron ore to be able to be exported to China without hindrance.

“These measures are always disappointing, but let’s hope, certainly, that they are very much short-term.”

Albanese said it was important the ban was “resolved quickly”.

The prime minister’s concerns were echoed by Treasurer Jim Chalmers, who said he was seeking a meeting with BHP chief executive Mike Henry.

“I’ve seen those reports. They’re concerning reports,” he said.

“Ultimately, though, they are about the commercial arrangements between two companies. And so, in one respect, a matter for the company to work through.

“I’ll have discussions with Mike Henry about that in due course, when we can set that up.”

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 created to bolster China’s influence in the global iron ore market, and this move further highlights Beijing’s determination to gain greater sway over prices.

Iron ore is a key ingredient in steel production, and Chinese demand for it has been instrumental in Australia’s economic prosperity, accounting for up to 5 per cent of the country’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.