Quashing speculation that a resolution was imminent or had been secretly reached over troubled iron ore price talks between global miners and China, a senior official of the China Iron and Steel Association said Friday the talks were still ongoing.

China, the world's biggest iron ore importer, hopes annual iron ore talks will reach a "reasonable solution," said Luo Bingsheng, the association's vice chairman.

"We hope to get a win-win solution at this year's talks," Luo told reporters at the association's quarterly press briefing.

Even as the association is locked in protracted negotiations with global miners, it has sought to control the flow of China's iron ore imports.

Luo said the association is reviewing the country's 112 import licenses but denied market chatter that the government intends to allow only around 10 such permits.

"I have not received any information, nor has anyone brought up with me, this plan to cut import ore licenses to around 10 licenses," Luo said.

By controlling iron ore import licenses, the association also aims to prevent ore from flowing to pollutive, obsolete mills, aiding its effort to consolidate and clean up a large and fragmented industry, Luo said.

Luo's comments reflect a broad-brushed sketch of the association's views on the deficiencies of China's steel market; in particular, the difficulties it faces in controlling iron ore prices.

Instead of widely fluctuating spot market prices existing alongside annual term prices, China's iron ore imports should be settled at one unified price, Luo said, adding that he expects this unified price to be reached via the annual negotiations.

"Having two prices causes speculation," he said.

Luo declined to comment on a statement Wednesday by BHP Billiton Ltd. (BHP) saying the Anglo-Australian miner had made advances in settling more of its contracts with a mix of index-linked and quarterly pricing, saying he would not remark on developments in the price talks.

China should also develop more local iron ore mines to meet its rising demand, Luo said, noting that the country will need both foreign and domestic iron ore to supply its fast-growing steel industry.

The association is leading China in the price talks with Rio Tinto PLC (RTP), BHP and Brazilian miner Vale SA (VALE), which have broken down amid China's espionage and bribery charges against four Rio Tinto employees.

-By Chuin-Wei Yap, Dow Jones Newswires; 8610 6588 5848; chuin-wei.yap@dowjones.com