B.H.P. wins large coal contract

Press, 26 June 1978, Page 12

B.H.P. wins large coal contract

NZPA Melbourne I South Korea is becoming I a major new market for ! Australian coal with the an- [ nouncement o'f a sAust3soM [contract between Pohang [iron and Steel Company, and [the Broken Hill Proprietary [Company, Ltd. Pohang has agreed to take 7.1 M tonnes of coking coal from B.H.P’s new Gregory ! open-cut mine in the Bowen ‘Basin. ' The contract is for 15 [years with the first delivjeries in 1980, when the Gregory mine is due to start production. Measured by tonnage, the agreement with B.H.P. is the largest coal supply contract yet signed by the fast-grow-ing Korean steel producer. 1

: In the last month, Pohang;. has also announced substan- ’ tial contracts with two other r Australian coal producers, j Utah Development Company, [ Ltd, and R. W. Miller (Hold- [ ings) Ltd. The South Korean Govern-: ment, and the Korean Devel-! , :opment Bank are the main j!shareholders of Pohang Iron) , land Steel. In the five years: J since it began producing,! production has risen from Jone million tonnes to around 5.6 M tonnes a year. :[ By 1981, the company! :|which already buys about! !sAustlooM worth of coal! j[and iron ore from Australia! ;[a year, expects to have in- ;! creased its production capac- ■ lity to more than eight million tonnes.