13th Apr 2005 07:01
BHP Billiton PLC13 April 2005 Date 13 April 2005Number 15/05 BHP BILLITON SETTLES IRON ORE PRICES BHP Billiton today announced it had reached agreement with a number of its steelcustomers 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(TM) ) and Brockman (Yarrie) ores will also increase by the same percentage. BHP Billiton President Iron Ore Graeme Hunt said the price increases were aresult of increasing global steel demand. "The growing demand for steel is causing a significant increase in demand forour products. Higher iron ore prices reflect the additional costs we areincurring to meet our customers needs now and in the future through newinvestment," he said. Mr Hunt said that while BHP Billiton was not successful this year gainingrecognition of the freight cost advantages to north Asian steel makers insourcing Australian iron ore, the issue was still relevant. "We will continue todiscuss 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 United KingdomJane Belcher, Investor Relations Mark Lidiard, Investor & Media RelationsTel: +61 3 9609 3952 Mobile: +61 417 031 653 Tel: +44 20 7802 4156email: [email protected] email: [email protected] Price, Media Relations Ariane Gentil, Media RelationsTel: +61 3 9609 3815 Mobile: +61 419 152 780 Tel: +44 20 7802 4177email: [email protected] email: [email protected] United States South AfricaTel: +1 713 599 6100 or +44 20 7802 4031 Michael Campbell, Investor & Media Relationsemail: [email protected] Tel: +27 11 376 3360 Mobile: +27 82 458 2587 email: [email protected] BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209Registered in Australia Registered in England and WalesRegistered Office: Level 27, 180 Lonsdale Street Melbourne Registered Office: Neathouse Place London SW1V 1BH UnitedVictoria 3000 KingdomTelephone +61 1300 554 757 Facsimile +61 3 9609 3015 Telephone +44 20 7802 4000 Facsimile +44 20 7802 4111 The BHP Billiton Group is headquartered in Australia This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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