BHP Billiton has signed an eight-year supply agreement with South Korea's Hyundai Steel to deliver 22 million tons of iron ore.
The deal follows the long-term coking coal supply agreement signed by both companies in 2008.
BHP Billiton president of marketing Tom Schutte said the agreement strengthens the company's relationship with Hyundai but said that details of the transaction will remain private.
"Although all commercial terms of the contract remain confidential as per the contractual agreement, we are pleased to see that the contract satisfies each company's interest," Schutte said.
Hyundai is building an integrated steel works at Dangjin with annual capacity of eight million tons of crude steel and will operate the first blast furnace plant from January 2010, BHP Billiton said.