Free trade pact to cut costs of coal and iron

Agreement to ensure supply of raw materials, duties to be phased out

The landmark signing of a free trade agreement between China and Australia on Wednesday will further ensure the supply of commodities to the world's second-largest economy, helping Chinese users cut costs for materials such as coal and iron ore, industry experts said.

After more than a decade of negotiations, the two sides signed the China-Australia Free Trade Agreement, giving Chinese steel companies and power stations more choices when they need to import iron ore and thermal coal.