BHP gets deal to market OneSteel"s iron ore
BHP Billiton has been appointed exclusive agent to market iron ore and pellets produced by Australian steelmaker OneSteel which is expanding its output of iron ore for sale, the companies tell Steel Business Briefing.
The agency agreement covers about 3m tonnes/year of 63% Fe hematite ore (1.3m t/y lump and 1.7m t/y fines) as well as 220,000 t/y of pellets for export. The term will extend for an initial five-year period from 20 August 2005 and covers all markets excluding Australia and New Zealand – OneSteel already sells around 1m t/y of ore to Australia"s Bluescope. The contract may be extended for a further six years, subject to agreement from both sides, SBB understands.
Upscaled to meet China"s demand for ore, OneSteel"s expansion, known as Project Magnet, is scheduled to begin shipping the additional ore in the first half of 2007. The mine will crush about 9.5m t/y of magnetite and hematite ore, up from 3m t/y of hematite previously, SBB is told.
OneSteel will use roughly 1.82m t/y of magnetite concentrate (processed from 4.6m t/y of 35% Fe ore) at its nearby Whyalla steelworks, while selling the remaining ore. The switch from using hematite to magnetite is expected to reduce the plant"s production costs by about 5%.
The agency agreement covers about 3m tonnes/year of 63% Fe hematite ore (1.3m t/y lump and 1.7m t/y fines) as well as 220,000 t/y of pellets for export. The term will extend for an initial five-year period from 20 August 2005 and covers all markets excluding Australia and New Zealand – OneSteel already sells around 1m t/y of ore to Australia"s Bluescope. The contract may be extended for a further six years, subject to agreement from both sides, SBB understands.
Upscaled to meet China"s demand for ore, OneSteel"s expansion, known as Project Magnet, is scheduled to begin shipping the additional ore in the first half of 2007. The mine will crush about 9.5m t/y of magnetite and hematite ore, up from 3m t/y of hematite previously, SBB is told.
OneSteel will use roughly 1.82m t/y of magnetite concentrate (processed from 4.6m t/y of 35% Fe ore) at its nearby Whyalla steelworks, while selling the remaining ore. The switch from using hematite to magnetite is expected to reduce the plant"s production costs by about 5%.