BHP Billiton settles Iron Ore prices
BHP Billiton Plc
Registration number 3196209
JSE Share Code: BIL
ISIN: GB0000566504
NEWS RELEASE
BILLITON SETTLES IRON ORE PRICES
BHP Billiton today announced it had reached agreement with a number of its steel
customers on prices for contracted iron ore tonnage for the 2005 contract year.
The agreed prices are as follows:
Mt Newman High Grade Fines 61.72 US cents per dry metric tonne unit; an increase
of 71.5 per cent.
Prices for Mt Newman High Grade Lump, Pisolite (Yandi), Marra Mamba (Area C MAC)
and Brockman (Yarrie) ores will also increase by the same percentage.
BHP Billiton President Iron Ore Graeme Hunt said the price increases were a
result of increasing global steel demand.
`The growing demand for steel is causing a significant increase in demand for
our products. Higher iron ore prices reflect the additional costs we are
incurring to meet our customers needs now and in the future through new
investment,` he said.
Mr Hunt said that while BHP Billiton was not successful this year gaining
recognition of the freight cost advantages to north Asian steel makers in
sourcing Australian iron ore, the issue was still relevant. `We will continue
to discuss this issue with our customers in the year ahead,` he said.
Notes:
Iron ore prices are denominated in US cents per dry metric tonne unit, which
reflects a common base per unit of iron ore content.
To determine the USD price per tonne, the following conversion formula must be
used:
- US cents per dry metric tonne unit multiplied by iron content;
- The iron content for Mt Newman lump ores is about 65 per cent.
In FY2004, BHP Billiton`s Western Australian iron ore operations shipped a
record 88.3 wet million tonnes (100% basis) of ore.
Japan continues to be BHP Billiton Iron Ore`s biggest customer, buying 41 per
cent of its products, followed by China (23%), Korea (17%) Australia (9%) and
Taiwan (7%).
In 2004, the price of Mt Newman High Grade Lump was 45.93 US cents per dry
metric tonne unit; an increase of 18.62 per cent. Mt Newman High Grade Fines was
35.99 US cents per dry metric tonne; an increase of 18.62 per cent.
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia
Jane Belcher, Investor Relations
Tel: +61 3 9609 3952 Mobile: +61 417 031 653
email: Jane.H.Belcher@bhpbilliton.com
Tania Price, Media Relations
Tel: +61 3 9609 3815 Mobile: +61 419 152 780
email: Tania.Price@bhpbilliton.com
United Kingdom
Mark Lidiard, Investor & Media Relations
Tel: +44 20 7802 4156
email: Mark.Lidiard@bhpbilliton.com
Ariane Gentil, Media Relations
Tel: +44 20 7802 4177
email: Ariane.Gentil@bhpbilliton.com
United States
Tel: +1 713 599 6100 or +44 20 7802 4031
email: Mark.Lidiard@bhpbilliton.com
South Africa
Michael Campbell, Investor & Media Relations
Tel: +27 11 376 3360 Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com
Date 13 April 2005
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