South Korea's Hyundai INI Steel Co. has signed a memorandum of understanding with BHP Billiton Ltd. (BHP) to receive iron ore and bituminous coal from the Australian mining company for ten years starting from 2010.
During the period, BHP Billiton will supply 4 million to 5 million metric tons of iron ore and 2.5 million to 3.0 million tons of bituminous coal annually to Hyundai INI Steel.
The amount equals 40% of Hyundai INI's annual consumption of the products.
The long-term supply pact is in line with Hyundai INI's plan to build an additional domestic iron ore mill with a 7 million ton annual capacity in Songsan, South Korea by 2010, the company said.
With the new steel mill, Hyundai INI, which is an affiliate of Hyundai Motor Group, South Korea's largest automative conglomerate in terms of sales, expects its total steel production to rise to 17 million tons annually.