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Hyundai Steel, BHP Billiton Sign Long-Term Iron Ore Supply Agreement

09/11/2009 - Hyundai Steel and BHP Billiton sign an eight-year supply contract to deliver 22 million tonnes of iron ore from 2009.

Delegations of Hyundai Steel and BHP Billiton have signed an eight-year supply contract to deliver 22 million tonnes of iron ore from 2009.
 
Hyundai Steel, the world's second-largest electric arc furnace steelmaker, is building an integrated steel works at Dangjin with annual capacity of eight million tonnes of crude steel and will operate the first blast furnace plant from January 2009.
 
Hyundai Steel President Y C Woo said that following the long-term coking coal supply contract last year, this is a further confirmation of the strong relationship with BHP Billiton. “Hyundai Steel now have secured a total of 13.6 million tonnes of iron ore, which is enough to operate the integrated steel works with eight million tonnes of annual crude steel production capacity by signing with BHP Billiton,” noted Woo.
 
BHP Billiton President of Marketing Tom Schutte added, "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, the world's largest diversified natural resources company and third-largest seaborne iron ore supplier, has financial strength through strong cash flow and balance sheet, a diversity of products and customers, access to global capital markets and an extensive platform of growth opportunities.