Australian giant mining company BHP Billiton has announced today that it has reached an agreement with Chinese steelmaker Baosteel on the price for iron ore deliveries for the contract year commencing April 1, 2008.
Based on the agreement, the new prices for BHP Billiton are US cents 144.66 per dry metric ton unit for Yandi Fine Ore and Newman Fine Ore, and US cents 201.69 per dry metric ton unit for Newman Lump Ore.
Accordingly, BHP Billiton's Yandi Fine Ore and Newman Fine Ore prices have both increased by 79.88 percent, while the price for Newman Lump Ore has increased by 96.5 percent.
The following prices apply to all of the miner's long-term supply agreements with Baosteel for deliveries in the current contract year.
Commenting on the agreement, BHP Billiton President Marketing Tom Schutte said, "We note the recent 2008 contract year price settlement of a major supply source for Australian iron ore with Baosteel. We are pleased to have also reached agreement with Baosteel at the prices announced today. We will now seek to settle agreements with the remainder of our customers under existing long-term supply agreements both in China and other countries."