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BHP BILLITON PLC - BHP BILLITON SIGNS WHEELARRA JV AND ANNOUNCES US$3.2 BILLION
ADDITIONAL SALES CONTRACTS
BHP BILLITON PLC
Registration number 3196209
Registered in England and Wales
SHARE CODE: BIL
ISIN: GB0000566504
NEWS RELEASE
BHP BILLITON SIGNS WHEELARRA JV AND ANNOUNCES
US$3.2 BILLION ADDITIONAL SALES CONTRACTS
BHP Billiton today announced the signing of the formal agreement for the
Wheelarra Joint Venture with four of China`s leading steel mills and its
existing Japanese joint venture partners, ITOCHU Minerals & Energy of Australia
and Mitsui Iron Ore Corporation.
It also announced that it had secured further long-term sales commitments for
its MACTM iron ore products with these Chinese steel mills worth around US$3.2
billion over the next 10 years.
The Chinese 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 Co Ltd (`TANGGANG`)
The Wheelara Joint Venture, announced in March this year, centred on a sub-lease
over BHP Billiton`s Jimblebar mine, near Newman in Western Australia and
involved sales of 12 million tonnes per annum (Mtpa) of Mt. Newman iron
ore over the next 25 years.
The new sales commitments announced today are for the supply of an additional
12Mtpa of MAC Marra Mamba ore on top of the Mt. Newman iron ore. MAC ore is
produced at BHP Billiton`s Area C mine, 120km north of Newman, which opened in
October 2003.
President BHP Billiton Iron Ore Graeme Hunt said the doubling of sales and
purchase commitments reflects the value of the strategic relationships BHP
Billiton has developed with the Chinese steel mills.
`It is extremely pleasing to see that additional benefits have already started
flowing to both BHP Billiton and its Chinese partners as a result of the
Wheelarra Joint Venture,` he said.
`We were always confident that the agreement would underpin a strategic
relationship which would grow beyond the sales contracts for the Mt Newman iron
ore. This relationship will also ensure BHP Billiton maintains its share of the
growing Chinese iron ore market.`
BHP Billiton has been able to consistently meet the increase in global demand
for iron ore through the responsible and sustainable expansion of its business
over the past eight years.
Since 1994 the company has virtually doubled system capacity to 100Mtpa, with
almost 40Mtpa of this growth achieved in the past two years alone.
The company also announced the Rapid Growth Project in February 2004, which will
increase system capacity to 110Mtpa by the end of 2004, and is nearing
completion of a Feasibility Study into the further expansion of capacity to
145Mtpa.
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Jane Belcher, Investor Mark Lidiard, Investor & Media Relations
Relations Tel: +44 20 7802 4156
Tel: +61 3 9609 3952 Mobile: email: Mark.Lidiard@bhpbilliton.com
+61 417 031 653
email:
Jane.H.Belcher@bhpbilliton.com
Tania Price, Media Relations Ariane Gentil, Media Relations
Tel: +61 3 9609 3815 Mobile: Tel: +44 20 7802 4177 Mobile: +44 78 81 51
+61 419 152 780 8715
email: email: Ariane.Gentil@bhpbilliton.com
Tania.Price@bhpbilliton.com
South Africa
United States Michael Campbell, Investor & Media Relations
Francis McAllister, Investor Tel: +27 11 376 3360 Mobile: +27 82 458
Relations 2587
Tel: +1 713 961 8625 Mobile: email: Michael.J.Campbell@bhpbilliton.com
+1 713 480 3699
email:
Francis.R.McAllister@bhpbillito
n.com
Date: 28/09/2004 09:08:25 AM
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