BEIJING (Commodity Online): Finally, there is light at the end of the tunnel for Chinese millers, who have been watching the grueling talks between global miners and Chinese executives over the iron ore pricing.

It seems the deadlock is over with BHP Billiton Ltd, the world’s largest mining company, agreeing to sell 30 per cent of its iron ore under new pricing mechanisms.

According to media reports, this ore will be sold through a mix of cash, quarterly and indexed pricing, Melbourne-based BHP said in a statement.

About 23 per cent will be sold under fixed-price contracts at 33 per cent less than last year’s price and talks for the remaining 47 per cent of volumes are continuing.

Talks between China and Rio Tinto Group, which has four executives detained by Chinese authorities for allegedly spying, have stalled over the size of a price cut.

The 33 percent price cut agreed for contract prices matches the accord settled in May between Rio, the world’s second-largest iron ore exporter, and mills in Japan and South Korea. Chinese steel mills have been insisting on a contract price cut of as much as 45 per cent.

The spot price for Australian ore at a grade of 62 per cent of iron has gained 56 per cent since the first quarter and traded unchanged at $91.90 a ton this week, the highest this year.

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