Nippon Steel to pay $300/ton for coking coal to BMA

TOKYO, April 9 (Reuters) - Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz) said on Wednesday it had agreed with BHP Billiton Mitsubishi Alliance (BMA), the world's biggest coking coal producer, to pay $300 a tonne for term supply of coking coal in the year started on April 1.

The 2007/08 term price was $98.

BMA is a joint venture between BHP Billiton Ltd (BHP.AX: Quote, Profile, Research, Stock Buzz) (BLT.L: Quote, Profile, Research, Stock Buzz) and Japan's Mitsubishi Corp (8058.T: Quote, Profile, Research, Stock Buzz).

Nippon Steel estimates high raw materials prices will cost Japan's steel industry 3 trillion yen more during the year, up from the previous estimate of 2 trillion yen, a company spokesman said.