Hyundai INI inks supply deal with BHP Billiton

Hyundai INI inks supply deal with BHP Billiton

South Korea's Hyundai INI Steel Co announced yesterday that it signed a memorandum of understanding (MoU) with Australia's BHP Billiton Ltd for the supply of iron ore and coal for ten years starting from 2010. The price of the agreement has not been disclosed. In line with the MoU, during these ten years, BHP Billiton will supply 4-5 million metric tons of iron ore and 2.5-3 million tons of bituminous coal annually to Hyundai INI Steel. The deal is in line with Hyundai INI's plan to build an integrated mill with a 7 million ton annual capacity in South Korea by 2010, the company sources reported. "Given the new steel mill project, securing high quality raw materials on a long-term basis and with stability is a key to success," said Hyundai INI in the statement. The new steel mill is expected to raise Hyundai INI's total annual sales to 17 million tons.