BHP Billiton signs Wheelarra joint venture agreement

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.