The world's largest diversified miner and No. 3 iron ore miner, BHP Billiton Ltd, is still working on plans to sign a long-term iron ore price contracts with Chinese steel mills. Tom Schutte, president, marketing for BHP, said that the firm is set to start next year's negotiations for the deal to materialize soon.

Mr Schutte said: "China is well advanced with most indicators increasing to strength, continuing a stronger-than-expected recovery and positive momentum."

Spot ore prices in China stood at $115 (70 pounds) a ton, but came back to $82-$84 level this week. Schutte said that most of the BHP's customers preferred to go for short- term pricing arrangements amid uncertainties in the market under the impact of global financial crisis.

BHP President further added: "True demand of what is being consumed around the world will actually only become apparent to us in probably early-to-mid 2010." He said that BHP is also renegotiating some deals in cooking coal category under the ongoing pricing regime.

The total Australian export to China is expected to increase from just 1 million tonnes in 2008 to 30 million tonnes. Copper concentrate exports are also expected to rise 13 percent in 2009, owing to improving demand.

Schutte said: "We believe we are extremely well placed to take advantage of this growth."