On September 10, Australian miner BHP Billiton announced that delegations representing the world's second largest electric arc furnace steelmaker Hyundai Steel and BHP Billiton signed an eight-year supply contract to deliver 22 million mt of iron ore from 2009.
South Korea-based Hyundai Steel is building an integrated steel works at Dangjin with an annual capacity of eight million metric tons of crude steel and will operate the first blast furnace plant from January 2010.
Commenting on the agreement, Hyundai Steel president Y C Woo said that following the long-term coking coal supply contract last year the new agreement is a further confirmation of the company's strong relationship with BHP Billiton. By signing with BHP Billiton, Hyundai Steel has now secured a total of 13.6 million mt of iron ore, which is enough to operate the integrated steel works with an annual crude steel production capacity of eight million tons.
Meanwhile Tom Schutte, President Marketing of BHP Billiton, said, "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."
BHP Billiton is the world's largest diversified natural resources company and the third largest seaborne iron ore supplier. In its press release, BHP Billiton states that it possesses financial strength through its strong cash flow and balance sheet, a diversity of products and customers, access to global capital markets and an enviable platform of growth opportunities.