Today 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 is the world's second largest electric arc furnace steelmaker. Hyundai 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 2010.
BHP Billiton is the world's largest diversified natural resources company and the third largest seaborne iron ore supplier. BHP Billiton has financial strength through the strong cash flow and balance sheet, a diversity of products and customers, access to global capital markets and an enviable platform of growth opportunities.
Mr. Y C Woo, President of Hyundai Steel, 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.
Mr Tom Schutte, President Marketing of BHP Billiton said "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."