According to Reuters, Japan’s Nikkei business daily reports that Aussie mining giants BHP Billiton Ltd
(ASX:BHP) and Rio Tinto Ltd
(ASX:RIO) have informed steelmakers in Japan that they plan to increase iron ore prices by 23% for the July-September period.
The paper says this is the second consecutive price hike and puts iron prices at around $147 a tonne, an increase of 140% above the fiscal 2009 price.
Japanese steelmakers recently agreed to negotiate iron ore prices on a quarterly basis instead of the traditional annual basis, with the Nikkei reporting that they are likely to settle on a price close to this increase.
According to Reuters the paper says the steelmakers are likely to pass on these price hikes to their clients including the automakers like Toyota Motor.
In other news, BHP has given its first estimate for the size of its Jansen potash deposit in Canada.
Reuters reports that BHP expects the deposit to provide the miner with a significant entry into the potash industry.
BHP says Jansen has 3.37 billion tonnes of material that contains 25.4% potassium oxide, with production is due to commence in 2015.
BHP Billiton earned $7.24 billion in fiscal 09, less than half its earnings the year before, and Rio Tinto’s profit for 2009 improved slightly from the year before coming in at $5.4 billion.
