BHP Billiton has signed an agreement to supply China’s leading steelmaker Baosteel with an additional 94 million tonnes of iron ore over ten years.Under this new contract, Baosteel will be supplied with 10 million tonnes of iron ore each year for 10 years. The previous long-term contract had stipulated 6 million tonnes per year. The first shipment under the new contract is scheduled for April 2008.According to BHP’s marketing president Tom Schutte, the agreement will guarantee a stable and predictable supply of iron ore to Baosteel."This is a significant quantity of iron ore and highlights our interest in keeping pace with high demand in China during a time when supply is tight,” Schutte said.BHP announced it intended to keep up production by expanding mine, rail and port operations in Western Australia. It aims to reach a production capacity of 300 million tonnes per annum by 2015.Key contact:BHP Billitoncarbonsteelmaterials@bhpbilliton.com
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contract production, supply, iron ore, shipment, mine, steelmaker
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