BHP Billiton Ltd. (BHP) formally announced cuts in contract prices for metallurgical coal of 58% Wednesday, in line with settlements with Japanese steelmakers.

"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."

Analysts said the price cut is in line with previously reported settlements between BHP and Japanese steelmakers and won't result in changes to earnings forecasts.

Citigroup analysts reported in March that BHP had struck coking coal prices of between US$115-US$125 a metric ton and Merrill Lynch said the miner was settling premium coking coal prices at US$129 a ton.

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