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BHP selected as OneSteel’s agent

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BHP Billiton has announced that it has signed an agreement with OneSteel for BHP Billiton to become OneSteel's exclusive agent to market iron ores and pellets generated from OneSteel's Project Magnet.

BHP Billiton president iron ore Graeme Hunt said the agreement was for an initial period of five years from August 20 2005. The appointment was for all global markets excluding Australia and New Zealand.

"We are delighted to have been selected as OneSteel's marketing partner. The companies' clearly aligned strategic objectives and complementary iron ore products, together with BHP Billiton's innovative marketing model, helped us build a package that will assist OneSteel to extract maximum value from Project Magnet," Mr Hunt said.

OneSteel's Project Magnet is scheduled to begin in the second half of FY2006. BHP Billiton expects to develop markets for approximately three million tonnes per annum of hematite ore, both in lump and fines, and approximately 220,000 tonnes per annum of iron ore pellets.

"The marketing services we will provide under the agreement will combine the flexibility of a niche producer with the customer base, technical marketing, freight and back office capabilities of the leading mining house. It will allow OneSteel to build a distinctive iron ore product brand in global markets. We are very proud to have the opportunity to represent OneSteel in this venture," Mr Hunt said.

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