$9 Billion Supply Deal Struck

Resource giant BHP Billiton has won a US $9 billion deal to supply 12 million tons of iron ore annually over 25 years to four Chinese steel makers, according to a company statement.

It is the biggest contract BHP has ever won in China. BHP will also set up a joint venture with four companies under which the four will take a combined 40 percent stake in a sub-lease for BHP's Jimblebar mine operations near Newman in western Australia.

BHP Billiton Chief Executive Chip Goodyear said the joint venture with Wuhan Iron and Steel (Group) Corp, Maanshan Iron & Steel Co Ltd, Jiangsu Shagang Group Co Ltd and Tangshan Iron and Steel is a unique venture that would ensure stable and long-term iron ore supplies to a group of Chinese steel makers.