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Tuesday, 09 March 10
BHP AGREES SHORTER-TERM COAL DEALS WITH EUROPEAN, ASIAN CUSTOMERS


Diversified miner BHP Billiton on Monday reported that it had reached sales terms for a significant portion of its hard coking coal volumes for 2010, with customers in Europe, China, India and Japan.

The world’s number-one coking coal miner said that the deals were based on a “structural change” to shorter-term market-based pricing for the contract period.

The settlements reflected the company’s commitment to achieving market-clearing prices over time, across all its bulk commodities, said BHP Billiton, led by CEO Marius Kloppers.

The diversified mining company did not disclose the terms of the agreements with the European and Asian clients.

However, on Friday, newswire Reuters quoted Japanese steelmaker JFE Holdings as saying that it had agreed a coking coal price of $200/t for April to June.

The price for the three-month contract period represented a 55% increase from the benchmark price for the 2009/10 financial year of $129/t, Reuters reported.

BHP Billiton primarily produces and markets high-quality hard coking coals for the international steel industry. In addition, it supplies a wide range of other coal qualities to satisfy specific customer requirements.

The company’s metallurgical coal assets are located in areas with seaborne access to key steel producing regions. The group has access to dedicated deep-water ports allowing the use of large capacity vessels to further build on regional logistic advantages.
Source: Mining Weekly By: Esmarie Swanepoel Edited by: Mariaan Webb



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