NYK to extend long-term contract

NYK and New Zealand Steel Mining Ltd. (NZSM), one of the largest mining companies in New Zealand, have agreed to extend their current contract for an additional 15 years for the transport of ironsand from New Zealand to China and Japan.

Shipments under the new contract will begin from 2012 using a new 175,000 DWT vessel that will be built by Mitsubishi Heavy Industries Ltd. and dedicated to the transport of ironsand slurry. The annual volume is expected to be about 1.2 million tons.

NYK and NZSM are nearing the end of a contract for the transport of ironsand slurry using a 150,000 DWT vessel, which is the only vessel in the world designed to load ironsand slurry and as a result requires advanced operating and loading/discharging technique and know-how.

This contract extension will meet NZSM need to ensure the stable and competitive transportation of ironsand for the long term.

NZSM is a subsidiary of New Zealand Steel, which became part of the BlueScope group companies in 2002.