BHP Billiton Ltd., the world's largest mining company, and Mitsubishi Corp. will pay $2.4 billion to acquire the New Saraji coal project in Australia from New Hope Corp. as demand from steelmakers surges.

The site has estimated resources of 690 million metric tons of coking coal, Melbourne-based BHP said today a statement. That's almost 12 times the annual output of the 50-50 joint venture between BHP and Mitsubishi, according to figures on the venture's Web site.

The deal comes a day after Cleveland-Cliffs Inc.'s $10 billion purchase of Alpha Natural Resources Inc., the biggest in the coal industry. Takeovers of energy and mining companies have jumped 33 percent this year as coal prices rise to records. New Saraji is in Queensland's Bowen Basin, a key element in BHP Chief Executive Officer Marius Kloppers's $150 billion hostile takeover bid for Rio Tinto Group.

``There's been a huge shift in sentiment on coking coal and how attractive it is, which will clearly drive more consolidation,'' Simon Toyne, an analyst at Numis Securities in London, said today in a phone interview. ``Steelmaking raw materials are an attractive place to be right now and will continue to be so.''

Benchmark contract prices for thermal coal more than doubled to $125 a metric ton for the year from April 1, and coking coal rose 200 percent to $300 a ton. Demand soared 33 percent worldwide in the past five years as coal is combined with iron to make steel and is used to produce 29 percent of the world's power, according to data compiled by BP Plc.

Chinese Demand

The increasing need for power in emerging markets and supply bottlenecks at ports in South Africa and Australia also put a premium on coal. China, the world's fastest-growing economy, gets 80 percent of its electricity from the mineral. India uses coal to generate about half its energy.

``Coal prices have soared on supply disruptions, which means you have to be looking at the next big growth area,'' Charles Cooper, an analyst at Evolution Securities in London, said today in a telephone interview. ``This move supports their bid for Rio Tinto.''

BHP, which is spending $85 billion to expand metal output to meet demand led by China, says a takeover of Rio would allow the companies to develop iron-ore mines in Western Australia more quickly and boost efficiency of coal mining in the Hunter Valley and Bowen Basin.

BHP Chairman

``Combining these two companies means we will be able to supply developing economies faster,'' BHP Chairman Don Argus said today in Brisbane. ``It means optimizing thermal coal operations in Hunter Valley.''

New Saraji, located next to BHP Billiton Mitsubishi Alliance's current mine, holds 156 million tons of ``indicated'' resources and 534 million tons of ``inferred'' resources, according to today's statement. The venture's production capacity totaled 58 million tons of thermal and coking coal in 2007, according to figures on its Web site.

The acquisition will also give BHP and Mitsubishi 10 million tons a year of shipping capacity from the Abbott Point coal terminal on Queen Island, according to the statement.

BHP rose 21 pence, or 1.3 percent, to close at 1,630 pence on the London Stock Exchange, boosting the company's market value to 97.3 billion pounds ($194.9 billion).