BHP Billiton: Signs Long-Term Iron Ore Pact With Hyundai
September 10 2009 - 3:37AM
Dow Jones News
BHP Billiton Ltd. (BHP) said Thursday it has signed a long-term
iron ore supply agreement with South Korean steelmaker Hyundai
Steel Co. (004020.SE) for an eight year period covering 22 million
metric tons.
The contract is to take effect this year.
Hyundai is the world's second largest electric arc furnace
steelmaker, and is building an integrated steel works at Dangjin
with annual capacity of 8 million tons of crude steel.
It will operate the blast furnace from January 2009.
Hyundai Steel now has secured a total of 13.6 million tons of
iron ore, enough to operate the integrated steel works, Y C Woo,
president of Hyundai Steel, said in a joint statement with BHP.
"I am very pleased that we continue to strengthen our
relationship with Hyundai Steel following the long term coking coal
supply contract last year. Although all commercial terms of the
contract remain confidential as per the contractual agreement, we
are pleased to see that the contract satisfies each company's
interest," said Tom Schutte, president of marketing of BHP
Billiton.
-By Elisabeth Behrmann, Dow Jones Newswires;
61-2-8272-4689 elisabeth.behrmann@dowjones.com