Beijing  - Australian mining giant Fortescue Metals Group, has agreed to supply China with iron ore at a 35-per-cent discount on last year's price, China's steel industry announced Monday.

Fortescue has committed to selling iron ore fines at 0.94 US dollars per dry metric ton unit and iron ore lumps at 1 US dollar per dry metric ton unit for the second half of 2009, the China Iron and Steel Association Secretary announced.

China has been pushing for a discount of up to 40 per cent in recent price negotiations. Talks had stalled as China resisted pressure to accept the same offer of 0.97 US dollars per dry metric ton that Rio Tinto Ltd had agreed to with Japanese steel companies. (dpa0