BHP Billiton signs Wheelarra joint venture agreement
According to the statement released by Australian
BHP Billiton, the company has recently signed the formal agreement regarding Wheelarra joint venture with four Chinese steel makers, namely Wuhan Iron and Steel Group Corp, Maanshan Iron and Steel Company Ltd, Jiangsu
Shagang Group Co Ltd and Tangshan Iron and Steel Co Ltd and with its existing Japanese partners ITOCHU Minerals & Energy of
Australia and Mitsui
Iron Ore Corp.
As previously reported by SteelOrbis,
BHP Billiton signed the
iron ore contract with the subject Chinese steel makers in March 2004, which covered establishment of Wheelarra joint venture. However the formal agreement regarding this joint venture was not signed in March.
According to the deal,
BHP Billiton will sell 12 million tons of
iron ore to its Chinese partners per annum for the next 25 years.
BHP Billiton also announced that it has recently signed an additional agreement worth $3.2 billion to supply 12 million tons of MAC™
iron ore products to its Chinese partners per annum over 10 years.
Through these agreements,
BHP Billiton will increase its share in the growing Chinese
iron ore market.