Dalmia Cement has reportedly signed a 12-18 month supply contract with BHP Billiton for 10 cargoes of South African coal. Cargill is providing freight for the deal and deliveries will begin in April 2008.

Dalmia Cement is one of the Indian cement makers which prefer South African coal quality over Indonesian imports.

It may be noted that Indian cement makers have avoided long term supply contracts for South African coal during the past two years, when imports and prices have surged.