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dudediligenton Jun 10, 2009 12:32am
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BHP Coal Pricing Info
BHP Coal Pricing InfoBHP Says Coking Coal Prices Drop About 58% in 2009 (Update1)
By Rebecca Keenan
June 10 (Bloomberg) --BHP Billiton Ltd., the world’s largest mining company, settled annual coking coal contract prices at about 58 percent less than 2008 as demand for the product used to make steel declines.
A “significant portion” of supply contracts have been settled with “key global customers,” the Melbourne-based company said today in a statement to the Australian Stock Exchange. BHP and Mitsubishi Corp.’s alliance is the world’s biggest exporter of coking coal.
Asian coking coal prices plunged from 2008 after the global recession curbed demand from mills including Japan’s Nippon Steel Corp. BHP’s production of metallurgical coal, also known as coking coal, may be 10 to 15 percent less than current capacity this year because of lower demand, BHP said in April.
Metallurgical coal sales accounted for 6.7 percent of BHP’s revenue in the year ended June 30, 2008. The annual contracts cover sales running