BHP Billiton Ltd. (BHP) said Wednesday it has agreed to cuts in contract prices for metallurgical coal of 58% with a significant number of its customers.

"Terms for a significant portion of 2009 BHP Billiton metallurgical coal contracts have been concluded following settlements with key global customers," the miner said in a statement.

"Based on settlements to date, US$ (freight on board) prices for prime metallurgical coal products are expected to decrease by approximately 58% from 2008 levels."

Demand for metallurgical coal, used in the steelmaking process, has been hit hard by the downturn in global steel markets.

BHP, together with joint venture partner Mitsubishi Corp. (8058.TO), is the world's largest exporter of seaborne metallurgical coal.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; alex.wilson@dowjones.com