IBH, under various long-term contractual agreements, conducts business with its shareholders and certain affiliates (see Note 1). Accounts with related companies consist of the following: September 30, 1999 1998 (Thousands of U.S. dollars) Funds on deposit with (cash equivalent): Tesocorp Administradora - 15.130 Accounts receivable Participation in loans due from Orinoco Iron, C.A. (Note 7) 45.959 - The Broken Hill Propietary (Nota 7) - 9.420 Siderúrgica del Turbio "Sidetur", S.A. 33 1.209 Rutedis, Ltd. 407 712 Other 19 7 46.418 11.348 Long-term accounts receivable Orinoco iron, C.A. (Note 7) 3.026 45.330 September 30, 1999 1998 (Thousands of U.S. dollars) Accounts payable Tesocorp Administradora 4.304 - Siderúrgica Venezolana "Sivensa", S.A.C.A 266 69 Metalmechanic C.D 2 2 Steel Division Procurement 1.034 2.219 Orinoco Iron, C.A. - 78 Servicios Administrativos Trix de Venezuela, C.A 9 60 Operaciones RDI, C.A 147 16 Other 15 47 5.777 2.491 Significant transactions with related companies consist of the following: Years ended September 30,   1999 1998 (Thousands of U.S. dollars) Sales of HBI 4.520 37.535 44.362 Purchases of iron ore 29.108 33.831 45.824 Purchases of spare parts and supplies 5.560 7.700 446 Administrative Expenses 1.163 936 8.973 Cost of electricity, gas and water 7.654 6.047 3.289 Interest income: - - - From Joint Venture affiliates (Note 7) 8.306 7.903 - From other related companies 784 593 807 Fior exchanged most of its net assets for new shares of IBH and a US$20 million note from IBH (see Note 1). This note was treated as a bridge loan intended to be repaid soon after formation of the Joint Venture with BHP; this note did not earn interest. IBH paid this note in November 1997. In 1997 IBH made a US$40 million cash contribution in the form of subordinated debt to Orinoco Iron (see Note 7); this loan earned an annual interest of 8% and was repaid in November 1997. The iron ore used in the production of HBI is provided by CVG Ferrominera del Orinoco, C.A., a Venezuelan state-owned company and the only supplier of this raw material in Venezuela, under a contract entered into in 1988. The price of iron ore is fixed annually by reference to prevailing prices in the world market. This contract is for a period of ten years and has an automatic renewal clause; it was renewed in 1997 under the same conditions for a period of twenty years. There is no minimum noncancellable commitment to purchase iron ore. Sales of HBI to related companies, mainly to Sidetur, are made in accordance with the respective sales contracts, dated September 1991 and modified in 1992, which establish: a) Venprecar´s commitment to supply the HBI product requirements of the related companies, and b) that invoiced sales prices will be 95% of the weighted average F.O.B. price of HBI export sales, during the preceding three shipments, by Venprecar and/or by any other Sivensa´s subsidiary that export HBI. The contracts are for a period of ten years. All the sales to related companies were made in Venezuela. Electricity, gas and water consumed by Venprecar, a majority-owned subsidiary, are delivered under contracts between third party suppliers and Sidetur. These contracts have a duration of ten years and were signed with Sidetur in 1991, which stipulate that Venprecar will reimburse Sidetur for the cost of the services received. Many of the administrative services required by Venprecar and Fior (predecessor to IBH) and its subsidiaries were supplied by Sidetur and Sivensa, under contracts; these services related mainly to management and sales support activities. These contracts were terminated in November 1997. Tesocorp Administradora, a subsidiary of Sivensa, manages some or all of IBH´s excess funds. Funds transferred by IBH are recorded as funds on deposit with a related company, are mainly denominated in bolivars, and earn interest based on prevailing market rates. Tesocorp may also obtain short-term loans on behalf of IBH and its subsidiaries, in order to cover temporary cash flow deficits resulting from normal operations.