BHP Billiton has reached agreement with China's Baosteel on the price for iron ore deliveries for the contract year which began on April 1, 2008.

Prices for Yandi Fine Ore and Newman Fine Ore are US$1.44.66 per dry metric tonne and for Newman Lump Ore US$2.01.69 per dry metric tonne.

The prices apply to all of its long-term supply agreements for deliveries in the contract year with Baosteel.

BHP Billiton Marketing president Tom Schutte says: "We are pleased to have reached agreement with Baosteel and will now seek to settle agreements with the remainder of our customers under existing long-term supply agreements both in China and other countries." 

BHP Billiton Ferrous and Coal,chief executive Marcus Randolph says: "Together with our positions in metallurgical coal and manganese, our iron ore business gives us a leading position in the supply of commodities to the steelmaking industry.

“We are happy to have been able to settle the prices with one of our most important customers and we've been particularly pleased with the spirit in which both Baosteel and BHP Billiton undertook negotiations.

“At the end of what has been a long process, we believe our relationship with our customers remains as positive and strong as ever." 

The prices are the same as those negotiated recently by Rio Tinto Iron Ore, which represented increases of up to 96.5%.

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