Most of the quotations received by Australian mining agreement customers are FOB. But a little more verbose: in the first case, because the strength of the mine is stronger than the reputation and strength of a single factory, the mine generally assists in chartering and the customer confirms the freight. Payment by letter of credit generally includes FOB+ freight. In the second case, if the steel mill is strong, it can charter its own boat or make a long-term COA charter agreement, so that the L/C payment is only FOB. The third situation is quite special. In the case that other long-term cooperative customers temporarily cancel the order in order to open the letter of credit within the specified time, the miner has no choice but to quote other long-term customers at CFR price, and the payment method of the letter of credit becomes CFR.

In fact, Brazil's long-term agreement is also very similar, so I won't go into details. Most of the earliest long-term agreements were signed on FOB basis.

I don't have specific data about the proportion of ore in the mine you mentioned. I can only tell you roughly that before the economic crisis in 2008, the number of Changxie mines in Australia and Brazil was basically equal to the export volume, and there was almost no spot sale. That is, this balance was broken during the economic crisis, and the specific reasons are very clear to everyone. In addition, as mines have been expanding production, the export volume of contracted mines is decreasing.