Dec 16 (Reuters) - China Mineral Resources Group (CMRG), a new...

Dec 16 (Reuters) - China Mineral Resources Group (CMRG), a new state-owned agency, is set to be the world's biggest iron ore buyer as soon as next year, when it will start buying for about 20 of the largest Chinese steelmakers, Bloomberg News reported.

CMRG was set up this year to buy raw materials for the country's giant domestic steel industry, as Beijing steps up efforts to increase control over the natural resources needed to feed its economy, the report said on Thursday, citing people familiar with the situation.

The agency has already started discussing supply contracts with top producers Rio Tinto Group (RIO) , Vale SA VALE3.SA and BHP Group (BHP) , as per the Bloomberg report.

In recent meetings, officials informed representatives from major iron ores miners about the changes, the report said, adding that the talks have spooked senior executives who are worried about the potential for China to increase its control over prices.

With CMRG taking over responsibility for certain contracts, the current structure for "term" supply contracts — in which steelmakers place orders on a quarterly basis and use a spot index for pricing — is expected to continue, the report stated further.

Rio Tinto declined to comment, while CMRG, China Baowu Steel, Vale and BHP did not immediately respond to Reuters' requests for comment.

Beijing created CMRG this year with a registered capital of 20 billion yuan ($3 billion). The creation was seen as Beijing's effort to gain more clout with suppliers like Rio, BHP Group, Fortescue Metals Group, Vale and others over pricing.