The three-year enterprise agreement covers seven mines, most of which produce high-grade coking coal, as well as the Hay Point coal terminal managed by the BHP Billiton Mitsubishi Alliance.

"Key elements of the enterprise agreement include an immediate one-off payment to each full-time employee, a pay increase of 12% over three years, and additional payments to each employee's superannuation fund over three years," BHP Billiton said.

BHPB had originally offered workers an 18.9% pay rise over three years, but unions declared conditions attached to the deal were unacceptable.

A series of rolling strikes earlier this year cost BHPB more than $100 million, and the mining giant claimed it threatened its position in key international export markets.

The agreement announced yesterday covers issues such as demarcation of work, access to contractors, safeguards to employee security, continuous improvement measures, roster arrangements and leave entitlements.

Benchmark coal prices rose up to 20% this year and are expected to steady next year. In a report released this week, the government forecaster, ABARE, predicted Australian coal shipments would rise a further 17%, or $1.8 billion, to around $12.6 billion in 2001-02.

Coal is already Australia's biggest export commodity, and BHP is the world's largest exporter of coking coal.

Yesterday's enterprise agreement was signed by representative from BHP Coal, the Construction, Forestry, Mining and Energy Union, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia, and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union.

It covers 2000 BHP Coal employees at Goonyella, Peak Downs, Saraji, Norwich Park, Gregory, Crinum and Blackwater mines, and the Hay Point coal terminal south of Mackay.

The mines and port are managed by the BHP Billiton Mitsubishi Alliance, which is jointly owned by BHP Billiton and Mitsubishi Development. - MiningNews.net