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| BHPB Signs Longterm Iron Ore Supply Contract With Hyundai Steel |
| = 22 Mt to be supplied during 8 years = |
|
BHP Billiton announced September 10 that it has concluded a longterm iron ore supply contract with Hyundai Steel. Under the contract, BHP Billion will deliver to this South Korean customer a total of 22 million tonnes (Mt) of iron ore over a period of 8 years from 2009. Annually 2.75 Mt will be supplied. Y. C. Woo, President of Hyundai Steel said that following the longterm coking coal supply contract last year, this is a further confirmation of the strong relationship with BHP Billiton. By signing the contract with BHP Billiton, Hyundai Steel now has secured a total of 13.6 Mt of iron ore, which is enough to operate the integrated steelworks with 8 Mt of annual crude steel production capacity. Hyundai Steel belongs to Hyundai Motor Group, boasting the world's second largest production capacity as an Electric Arc Furnace (EAF) steel manufacturer. EAF - steel rolling facilities are located at the three steelworks of Inchon, Pohang and Dangjin. The company is currently constructing an integrated steel plant comprising two blast furnaces on the reclaimed land of Dangjin works with a capacity of 8 Mt of crude steel per annum. Blowing in of No. 1 furnace is scheduled for January 2010, and the Company commenced import of ferrous raw materials this month. Hyundai Steel has adopted the world's first indoor storage system for ferrous raw materials including iron ore; three domed buildings, each with a 120 meter diameter and 65 meter height. Total storage capacity amounts to 1.9 Mt of iron ore, 0.8 Mt of coal, and 0.25 Mt of various auxiliary ferrous raw materials to provide for approximately 45 days. |
| last modified : Thu 17 Sep, 2009 [09:59] |
