The company said yesterday it had settled the terms for a “significant portion” of its metallurgical coking coal contracts with buyers in Japan and elsewhere.
Based on the settlements to date, the free on board prices for BHP Billiton Mitsubishi Alliance coking coal from Peak Downs coal – and other similar BMA products - are expected to increase from 206-240% over 2007 levels.
BHP’s announcement comes after news reports yesterday revealed the miner was seeking 300% price rises for its coking coal contracts to better echo increased spot coal prices.
BMA is the world’s largest exporter of coking coal.
Shares in BHP rose to a high of $A41.93 early but by mid-afternoon trade were at $41.93, a gain of $1.53.