NSC inks long-term iron ore agreements
Nippon Steel Corporation (NSC) inked several long-term contracts with various iron ore suppliers to secure long-term iron ore supplies. Rio Tinto, Robe Rive, BHP Billiton and CVRD will be major iron ore suppliers for NSC during the next five to ten years. NSC will buy 11 million tons per annum iron ore from Australian iron miner Rio Tinto Group's Hamersley Iron for 10 years. The company had a contract for 7 million tons per annum beforehand and now signed two more contracts; one for 2 million tons per annum Yandi fine ore and 2 million tons per annum high phosphorous Brockman ore. NSC and Robe River Iron Associates - an Australian iron ore joint venture set up by Nippon Steel Corporation, Mitsui & Co. Ltd, Sumitomo Metal Industries Ltd and the Rio Tinto Group, have agreed to increase the existing long term agreement to a total of 11 million tons per annum for about 10 years: 7.5 million tons per annum Robe ore and 3.5 million tons per annum West Angelas ore. NSC has also agreed with BHP Billiton to revise the long term agreement to purchase 2 million tons per annum of Yandi fine ore and 2 million tons Newman ore, totaling 4 million tons per annum, for 7 years from fiscal 2006. Another long term agreement has been entered into between NSC and Brazilian CVRD for additional 1 million tons for the first five years and 3 million tons for the next 5 years to be shipped from Itaguai Port. Combined with the 3 million tons per annum of Southern ore and 4 million tons of Northern ore under the existing agreement, the total contract tonnage with CVRD will be 10 million tons per annum.