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BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
Date 1 March 2004
BHP BILLITON ANNOUNCES NEW IRON ORE JOINT VENTURE
AND US$9 BILLION SALES CONTRACTS WITH CHINA
BHP Billiton today announced its intention to enter into the Wheelarra Joint
Venture with four of China"s leading steel mills. The joint venture will secure
the sale to the mills of approximately 12 million tonnes per annum (Mtpa) of
iron ore.
The joint venture will be BHP Billiton"s largest ever commercial agreement with
Chinese steel mills, with sales of iron ore expected to total US$9 billion over
the next 25 years.
The steel mills are:
Wuhan Iron and Steel (Group) Corporation, ("WUGANG")
Maanshan Iron and Steel Company Limited ("MAGANG")
Jiangsu Shagang Group Co Ltd ("SHAGANG")
Tangshan Iron and Steel (Group) Co Ltd ("TANGGANG")
Under the joint venture, the Chinese steel mills will take a 40 percent interest
in a sub-lease over BHP Billiton"s Jimblebar mine, near Newman in Western
Australia. BHP Billiton will retain a 51 percent interest, with Japanese joint
venture partners CI Minerals Australia and Mitsui Iron Ore Corporation taking a
4.8 percent and 4.2 percent interest respectively.
BHP Billiton Chief Executive Officer Chip Goodyear said the company was pleased
to be part of a unique venture that would see, for the first time, a partnership
with a group of Chinese steelmakers to ensure a stable, long-term supply of iron
ore to their own operations.
"The Wheelarra Joint Venture will underpin a major export agreement between
Australia and China and will cement an ongoing economic partnership between BHP
Billiton as a leading supplier of raw materials and China as a major industrial
nation," he said.
"We expect the relationship between China and BHP Billiton will provide further
opportunities for our other businesses, notably metallurgical coal and
manganese."
The Wheelarra Joint Venture agreement is expected to be formalised in Australia
soon.
BHP Billiton will immediately begin shipping an additional four to six Mtpa to
the Chinese mills, approximately doubling its total sales to these customers in
2004.
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Andrew Nairn, Investor Relations Mark Lidiard, Investor & Media Relations
Tel: +61 3 9609 3952 Mobile: +61 408 Tel: +44 20 7802 4156
313 259 email: Mark.Lidiard@bhpbilliton.com
email: Andrew.W.Nairn@bhpbilliton.com
Tania Price, Media Relations Ariane Gentil, Media Relations
Tel: +61 3 9609 3815 Mobile: +61 419 Tel: +44 20 7802 4177
152 780 email: Ariane.Gentil@bhpbilliton.com
email: Tania.Price@bhpbilliton.com
South Africa
United States Michael Campbell, Investor & Media
Francis McAllister, Investor Relations
Relations Tel: +27 11 376 3360 Mobile: +27 82 458
Tel: +1 713 961 8625 Mobile: +1 713 2587
480 3699 email: Michael.J.Campbell@bhpbilliton.com
email:
Francis.R.McAllister@bhpbilliton.com
Date: 01/03/2004 08:58:16 AM Produced by the JSE SENS Department |
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