BHP Strikes Some Iron Ore Prices, Talks Continue On Others
July 29 2009 - 1:34AM
Dow Jones News
BHP Billiton Ltd. (BHP) said Wednesday it has reached agreements
with more than half its customers on iron ore pricing but is still
in talks over the pricing of about 47% of its iron ore volumes.
The miner said it has settled 23% of its iron ore volumes at an
agreed annual contract price about 33% lower than the previous year
for fines and 44% lower for lump.
This is in line with the prices already struck between rival Rio
Tinto Ltd. (RTP) and Japanese steelmakers.
A further 30% of BHP's total iron ore volumes will now be sold
into a mix of quarterly negotiated pricing, spot sales and
index-based pricing, BHP said in a statement.
"The company believes that current settlements are indicative of
continued progress towards transparent market pricing," BHP
said.
-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094;
alex.wilson@dowjones.com