BHP H/Y Report-Dec 2000Pt3

BHP Limited
13 March 2001


PART 3

Independent Review Report

To the members of BHP Limited

Scope

We have reviewed the financial report of BHP Limited for the half year ended
31 December 2000 as set out on pages 10 to 28. The financial report includes
the consolidated financial statements of the consolidated entity comprising
the company and the entities it controlled at the end of the half year or
from time to time during the half year. The company's directors are
responsible for the financial report. We have performed an independent review
of the financial report in order to state whether, on the basis of the
procedures described, anything has come to our attention that would indicate
that the financial report is not presented fairly in accordance with
Accounting Standard AASB1029 'Half year accounts and consolidated accounts'
and other mandatory professional reporting requirements and statutory
requirements in Australia so as to present a view which is consistent with
our understanding of the consolidated entity's financial position, and
performance as represented by the results of its operations and its cash
flows, and in order for the company to lodge the financial report with the
Australian Securities and Investments Commission.

Our review has been conducted in accordance with Australian Auditing
Standards applicable to review engagements. The review is limited primarily
to inquiries of the company's personnel and analytical procedures applied to
the financial data. These procedures do not provide all the evidence that
would be required in an audit, thus the level of assurance is less than given
in an audit. We have not performed an audit and accordingly, we do not
express an audit opinion.

Statement

Based on our review, which is not an audit, we have not become aware of any
matter that makes us believe that the half year financial report of BHP
Limited is not in accordance with:

     (a)   the Corporations Law, including:

           (i)  giving a true and fair view of the consolidated entity's        
           financial position as at 31 December 2000 and of its performance for 
           the half year ended on that date; and

           (ii) complying with Accounting Standard AASB1029 'Half Year Accounts 
           and Consolidated Accounts' and the Corporations Regulations; and

    (b)     other mandatory professional reporting requirements. 

Arthur Andersen
Chartered Accountants

 
G A HOUNSELL

Partner 

Dated in Melbourne this 13th day of March 2001

Selected financial information has been restated on a six months to 30
December basis and is included below. These statistics have not been subject
to audit review. The purpose of making such restated data available is to
provide information, which is comparable in all material respects with
similar entities having a 30 December half year end.

All data presented has been prepared in accordance with Australian GAAP.

                                                                   
                                                     Half year ended 31 December
                                                              2000        1999
 STATISTICS                                              $ million   $ million
 

                                                                              
  Sales revenue ($ million)                                    10 506    9 285
  
  Net profit before tax ($ million)                             2 077    1 327

  Net profit attributable to BHP Shareholders ($ million)       1 427    1 210
                                                                      
  Shareholders' equity attributable to members of the BHP      10 408   10 144
  Entity ($ million)                                                          

  Net tangible assets attributable to members of the BHP       10 406    9 974
  Entity ($ million)                                                          

  Number of fully paid shares on issue (million)                1 786    1 774

  Weighted average fully paid shares on issue over the          1 784    1 761
  period (million)                                                            

  Profit from ordinary activities before tax as a               19.77    14.29
  percentage of sales revenue (%) (a)                                         

  Return on BHP shareholders' equity (annualised % rate) (b)     27.4     23.9
                                                                         
  Return on capital (annualised % rate)                          17.5     13.6

  Basic earnings per share (cents) (c)                           80.0     68.8

  Earnings per American Depositary Share (US cents) (d)          89.0     90.3
                                                                              
  Net tangible assets per fully paid share (A$) (e)              5.83     5.62

  Gearing Ratio (%)                                              38.6     48.0

  EBIT Interest Cover (times)                                     7.6      4.6

  EBITDA Interest Cover (times)                                  10.9      7.3

  Average A$/US$ hedge settlement rate (cents)                   0.55     0.65

  (a) For the six months ended 31 November 1999 profit from ordinary
      activities as a percentage of sales revenue was 12.74%. 
  (b) For the six months ended 31 November 1999 return on shareholders equity   
      was 22.0%. 
  (c) Based on Net profit attributable to members of the BHP Entity divided by  
      the weighted average number of fully paid shares. 

  (d) Each American Depositary Share represents two ordinary shares.
      Translated at the noon buying rate on Friday 29 December 2000 was         
      certified by the Federal Reserve Bank of New York A$1=US$0.5560 (30       
      November 1999 A$1=US$0.6371; 31 December 1999 A$1 = US$0.6560). 

  (e) For the six months ended 31 November 1999 net tangible assets per
      fully paid share was $5.46.