Global miner BHP Billiton Ltd
(ASX:BHP) says a number of customers have agreed to move to shorter term iron ore contracts.
The miner announced this morning that it has reached an agreement with a significant number of customers throughout Asia to move existing iron ore contracts that were previously priced annually, onto a shorter term landed price equivalent basis.
BHP says the agreements reached represent the majority of BHP Billiton’s iron ore sales volume.
The company says the structural change that these settlements represent is consistent with BHP achieving market clearing prices.
In the year to June 30, 2009 BHP Billiton recorded net profit of over $7 billion.
