Baosteel, BHP Billiton sign 10-year deal

Iron ore producer BHP Billiton has signed a 10-year agreement with Baoshan Iron & Steel (Baosteel) to provide the Chinese company with an additional 94 million tons of iron ore over the period, state media reported. Under the agreement, BHP Billiton will supply Baosteel with 10 million tons of iron ore annually. The agreement comes as Baosteel negotiates iron ore prices for 2008 with major ore providers, including BHP Billiton and Rio Tinto. BHP earlier announced record quarterly earnings as a result of booming demand from China. BHP has also expressed interest in acquiring Rio Tinto, which Chinese officials worry would give iron ore suppliers too much pricing power.