Hyundai Steel, South Korea’s second-largest steelmaker, will buy more than 8 million tonnes of coking coal from BHP Billiton, worth US$2.4 billion (HK$18.72 billion) at present prices, to secure supplies for its expansion.

BHP Billiton, the world’s largest mining company, will supply the steelmaking material from April 2009 to March 2014, the Incheon-based company said.

Hyundai Steel and competitor POSCO are expanding plants in anticipation of rising orders from carmakers and shipbuilders.

Coking coal prices tripled this year to about US$300 a ton because of rising demand and as floods in Australia cut supplies.

BLOOMBERG

Posted in : Mining Companies, Mining Exploration, Mining Industry, Mining Investment