Expl&Dev Apr 2001-Jun 2001

BHP Billiton Limited
31 July 2001


Release Time IMMEDIATE
Date          31 July 2001
Number     07/01

                       BHP BILLITON QUARTERLY REPORT ON

                    EXPLORATION AND DEVELOPMENT ACTIVITIES

                            April 2001 - June 2001

  This report covers exploration and development activities for the quarter
 ended 30 June, 2001.Unless otherwise stated, BHP Billiton's interest in the
             projects referred to in this report is 100 per cent.


        MINERALS DEVELOPMENT

        Aluminium

Mozal 2 Expansion, Mozambique (BHP Billiton 47.11% interest)

The Boards of BHP Billiton, Mitsubishi Corporation of Japan and the Industrial
Development Corporation of South Africa Ltd (IDC) announced the decision to
proceed with the Mozal expansion project (Mozal 2) on 21 June 2001. The
project will add a further 253,000 tonnes per annum (tpa) of aluminium
capacity at the smelter near Maputo, at a construction cost of US$860 million
(BHP Billiton share US$405 million), equivalent to a competitive US$3,400 per
tonne of new capacity. Construction has commenced and commissioning is
scheduled for late 2003, with full production expected after six months.

Hillside 3 Expansion, South Africa (BHP Billiton 100% interest)

A feasibility study into the construction of a third potline (of half size)
thereby adding a further 130,000 tons per annum (25%) to Hillside's current
capacity of 500,000 tons
per annum is near completion.


        Base Metals

Antamina Project, Peru (BHP Billiton 33.75% interest)

Mechanical completion of the US$2.3 billion Antamina copper/zinc project was
achieved on 15 May 2001, more than two months ahead of schedule. Commissioning
and ramp up to design throughput capacity of the concentrator (70,000 tonnes
per day), the concentrate pipeline and port facilities has proceeded well. It
is anticipated that the project will reach design throughput level well ahead
of schedule and under budget. Almost the entire construction workforce has now
been demobilised.



Escondida Phase IV Expansion, Chile (BHP Billiton 57.5% interest)

BHP Billiton and its joint venture partners in the Escondida copper mine in
northern Chile continued development activities for the Escondida Phase IV
project during the quarter. The Phase IV expansion will increase ore
processing capacity by 85 per cent resulting in an average copper production
of 400,000 tonnes per annum (average total production of 1.2 million tonnes
per annum) over the first five years of production. The development has an
estimated capital cost of US$1,045 million (BHP Billiton share US$600
million). All major equipment purchases and contracting activities have been
committed, major bulk earthworks and concreting is well advanced and
structural steel installation has commenced. Project mechanical completion is
on track for September 2002 with full production expected to be achieved by
April 2003.

Escondida Norte, Chile (BHP Billiton 57.5% interest)

External auditing of a new resource model has been successfully completed,
with the new model currently being used for the pre-feasibility study mine
plan scheduling. Pre-feasibility conceptual engineering and design has been
completed. A study to optimise the integration of the Escondida Norte Project
with the Escondida Phase IV expansion and Sulphide Leach Project is ongoing
and will be completed in July 2001. The pre-feasibility study is scheduled for
completion in August 2001.

Escondida Sulphide Leach, Chile (BHP Billiton 57.5% interest)

Project pre-feasibility study work is advancing with completion targeted in
the second quarter of

FY 2002. Pilot Heap (300,000 tonnes) tests commenced in May with initial
results in line with expectations. Pre-feasibility engineering contracts were
awarded to Fluor Engineering (leach/SX/EW) and Bechtel Engineering (water
supply) with work progressing on basic facilities design, locations and costs.

Tintaya Oxide Project, Peru (BHP Billiton 100% interest)

Construction of the Tintaya Oxide project continued during the quarter. Bulk
earthworks are

50 per cent complete and major concrete works are in progress. The Oxide
project will increase the Tintaya production by 38 per cent with a cathode
capacity of 34,000 tonnes per annum. The development has an estimated capital
cost of US$138 million. First cathode production is expected in early 2002
with full production to be achieved by mid 2002.

Spence Copper Project, Peru (BHP Billiton 100% interest)

Pre-feasibility study work on the Spence copper project in Chile has been
completed, and a full feasibility study is now in progress.


        Carbon Steel Materials

Mining Area C, Iron Ore, Western Australia (BHP Billiton 85% interest)

Negotiations with all registered groups under the Native Title Act Section 29
notice were finalised during the quarter and agreements were reached with all
Native Title groups. Pre-feasibility study work was completed on a 15 million
tonne per annum mine development and was approved to proceed to a full
feasibility study. Completion of the feasibility study is expected in February
2002. Development of a bulk sample pit to provide production scale
representative samples to customers is proceeding with site works to commence
in August 2001.

Yandi Lump, Iron Ore, Western Australia (BHP Billiton 85% interest)

BHP Billiton is carrying out a feasibility study on the production of an iron
ore lump product from the Yandi operations in Western Australia and currently
has a one million tonne trial underway with Japanese Steel mills. BHP Billiton
is the first to produce a lump product from the Yandi-type deposits. During
the quarter work continued on the feasibility study. Engineering service
contracts have been let and major equipment orders placed as part of project
fast tracking. Completion of the feasibility studies is expected in September
2001.

Blackwater Integration Project, Queensland (BHP Billiton 50% interest)

The Blackwater Integration Project was approved in February 2001 and is the
combination of the QCT Resources South Blackwater Mine and the existing
Blackwater Mine. The brownfields project will expand production to 13.5mtpa of
product coal sales per year by the end of FY2002. Total capital expenditure is
A$130 million over a period of 12 months.

Orders have been placed for a fleet of 300 metric tonne rear dump trucks, site
works have commenced and, detailed design is underway for new industrial
facility. Planning is also underway for relocation of a dragline from the
South Blackwater mine to the Blackwater mining area in August 2001.

Commissioning is on schedule for October 2001.

Dendrobium, Illawarra Coal (BHP Billiton 100%)

Feasibility studies are largely complete. The project's Environmental Impact
Statement and Species Impact Statement have been submitted to NSW Department
of Urban Affairs and Planning with the public exhibition period being
completed last month. Work to date is on schedule and within budget
allocations.


        Stainless Steel Materials

Gag Island Nickel, Indonesia (BHP Billiton 75% interest)

Discussions continue with the Indonesian Government, PT Aneka Tambang and
Falconbridge to resolve the forestry issues for the Gag Island joint venture.

Ravensthorpe Nickel Project, Western Australia (BHP Billiton 100% interest)

BHP Billiton, has reached agreement with Comet Resources Limited to purchase
Comet's remaining

50 per cent interest in the Ravensthorpe Nickel Project in Western Australia
at a cost of A$28 million, plus the cancellation of its 19.9 per cent interest
in Comet. Following completion, BHP Billiton will own 100 per cent of the
project. Work on the feasibility studies for the development of a laterite
mine and acid-leach plant at Ravensthorpe is now at an advanced stage.

Yabulu Expansion, Queensland (BHP Billiton 100% interest)

Feasibility Studies are in progress to expand the Yabulu nickel refinery to
treat intermediate product from the Ravensthorpe Project.

Thermal Coal

San Juan Underground, New Mexico, USA (BHP Billiton 100% interest)

In October 2000, Board approval was granted for the San Juan underground mine
development project which will replace production from two of BHP Billiton's
three existing surface mines (San Juan and La Plata) and will be the sole coal
source for the adjacent San Juan Generating Station. Development mining
continued and all major equipment has been received or ordered. During the
quarter the surface facilities contractor completed the earthworks at the main
portal, coal load out and ventilation shaft areas, began pouring conveyor
foundations and continued highwall stabilisation activities. The service
boreholes work was also completed. The ventilation shaft sinking commenced.
The project will be developed at a cost of US$148 million and full production
is expected by late 2002. Annual production will be 6.5 million short tons
(5.9 million metric tonnes).

Mount Arthur North, New South Wales (BHP Billiton 100% interest)

BHP Billiton announced approval for the commencement of construction of the
Mount Arthur North open cut thermal coal mine in the Upper Hunter Valley, New
South Wales on 5 July 2001. The estimated capital cost of the Mount Arthur
North development is US$411 million. The mine will be capable of producing up
to 15 million tonnes of raw coal per annum.

Production of 6.3 million tonnes of saleable coal, from the Bayswater/Mt
Arthur North complex, is expected to be achieved in FY2003. Full production
from Mount Arthur North of 12.1 million tonnes per annum of saleable coal is
expected by 2006. Full capacity of the combined operations is expected to be
up to 14.5 million tonnes of saleable coal per annum.

Carbones del Cerrejon Expansion, Colombia (BHP Billiton 33% interest)

In September 2000, BHP Billiton acquired a one-third interest in Carbones del
Cerrejon S.A. (CDC), leaving its ownership shared equally between BHP
Billiton, Anglo American plc and Glencore International AG. CDC owns and
operates the Cerrejon Central mine, which has a capacity of around three
million tpa of high quality export steaming coal. A feasibility study is
currently underway to evaluate a significant capacity increase.

Other Minerals

Ekatia Diamonds, Canada (BHP Billiton 51% interest)

A shallow delineation core drilling program was completed at the Lynx pipe
early in the quarter. A new resource model was completed based on the 2001
drilling intercepts and previous grade results. A total of 1.4 million tonnes
of measured and indicated resources were classified according to JORC. Total
sample tonnage for the 2001 bulk sample was estimated at 173.3 tonnes based
upon volumetrical, lithological and density data. Sample processing will be
carried out on site in summer 2001. The Lynx pipe is located in the Buffer
Zone approximately three km south west of the Misery pit.

Sample processing of the Fox pipe (Core Zone) bulk sample drill holes will be
carried out on site in summer 2001. Total sample tonnage for the 2001 bulk
sample was estimated at 172.6 dry tonnes, based upon volumetrical,
lithological and density data.

Two additional kimberlite pipes were discovered during the spring core
drilling programs bringing the total number of known kimberlites to 138. One
of the pipes (Impala) returned significant quantities of microdiamonds as
shown in the table below:

Pipe    Drill Hole  Dip  Interval      Sample   Stones     Stones         Total
        (s)                            (kg)     (<0.5mm)   (>0.5mm)       carats
Impala  01-05       -50o 35.7-103.1m    72.8     31         20            0.128
                      
Impala  01-05       -50o 103.1-170.9m   92.7     34         27            0.059
                                                                      
Impala  01-05       -50o 170.9-240.0m   112.4    46         25            0.195
                      

The Impala pipe was targeted on the basis of the FALCON(TM) gravity survey,
which was flown over the Ekati claims in late summer 2000. The pipe is
approximately two to three hectares in surface plan and is situated within the
Buffer Zone.

Petroleum

Echo Yodel, Australia (BHP Billiton 16.7% interest, non operated)

The Echo Yodel development concept consists of a subsea production facility
located in 140 metres of water at Echo Yodel, 23 km from the Goodwyn A
platform on the North West Shelf. The development includes two production
wells producing into a single multiphase flowline tied back to Goodwyn A.
Since initial sanctioning in September 2000, project progress remains on
schedule.

Estimated final cost is within budget and first production is targeted for
late December 2001. Initial production rates of 5,000 bpd (BHP Billiton share)
of condensate and gas production of 50 mmscfd (BHP Billiton share) are
expected. The first well, Yodel 3 was spudded in early June using the 'Ocean
General'. The completion string is currently being installed with earliest
finish planned for late July. Yodel 4 will be drilled following completion of
Yodel 3. All contracts have been awarded. The project achieved a major
milestone following fabrication completion of linepipe and coating in mid
July. Modifications to the Goodwyn A platform are being progressed.

Laminaria Phase 2 development, Australia (BHP Billiton 32.6% interest, non
operated)

On 15 May 2001 approval was announced for a production enhancement project on
the Laminaria offshore oil field in the Timor Sea, (North Western Australia)
in production licence AC/L5. The project will accelerate production from the
existing reserves base and access additional undeveloped oil reserves,
resulting in an additional 21 million barrels of production over the first two
years after start up. The development comprises the drilling, completion and
hook up of two new subsea horizontal wells into the 'Northern Endeavour'
floating production system. The increased production is scheduled to commence
in mid 2002 with an initial rate of approximately 65,000 barrels a day. The
current gross production level from the Laminaria/Corallina fields is 130,000
barrels per day (BHP Billiton share 37,000 barrels per day). The capital cost
of the project is approximately A$130 million (BHP Billiton share A$44
million).

Liverpool Bay - Hamilton East Field, UK (BHP Billiton 46.1%, operated)

The Hamilton East gas well was successfully drilled, reaching Total Depth on 6
July 2001 and was tested on 23 July 2001. The laying of the 6.5 km subsea
pipeline to tie the well back to the Hamilton North platform was due to
commence during the third quarter, with first gas targeted for October 2001.

NWS expansion, Australia (BHP Billiton 16.67%, non operated)

During the quarter approval was announced for a fourth train expansion of the
liquefied natural gas (LNG) processing facilities at the North West Shelf
Project in Western Australia. The approval covers a liquefaction processing
train (4.2 million tonnes per annum capacity) and a 42-inch gas trunkline to
be installed over a distance of 135 kilometres from the existing production
platforms to the Burrup Peninsula. The gross investment is A$2.4 billion with
a BHP Billiton share of approximately A$400 million. The pipeline is subject
to a later final endorsement by all the joint venture participants, expected
in December this year. An additional LNG ship with a capacity of approximately
135,000 cubic metres has also been ordered from the Daewoo Shipbuilding and
Marine Engineering Co. BHP Billiton and the other NWS joint venture
participants have sales arrangements in place with Tokyo Gas Co Ltd, Osaka Gas
Co Ltd, Toho Gas Co Ltd, Tohoku Electric Power Company Ltd and Kyushu Electric
Power Co, of Japan, for the supply of gas for periods up to 30 years and
totalling 2.9 mtpa. Discussions are at an advanced stage with other customers
to bring the total sales to around 4 mtpa. Site preparation commenced in the
first quarter 2001 and all major long lead equipment has been ordered. The
civil contract has been awarded with mechanical construction planned to
commence in the first quarter of 2002. First production is expected in mid
2004.

OHANET Development, Algeria (BHP Billiton 45%, joint operating entity
comprising SONATRACH/BHP Billiton)

At the end of June the program to acquire 3-D seismic data was completed. A
contract for the provision of two rigs to commence drilling the 32 new
vertical and horizontal wells has been awarded to Compagnie des Operations
Petrolier Schlumberger. The first rig commenced operations in June and the
second is expected to commence operations in August 2001.

The engineering, procurement and construction contractor ABB/PIL is
progressing in line with the construction schedule. All major long lead
equipment has been purchased. Clearance of the main production site is almost
complete and the main civil works subcontractor has started work on the
foundations. First production is scheduled for third quarter 2003 and peak
liquids production is expected to be around 58,000 barrels per day gross. The
statutory approval of the 15 per cent working interest farm-in by Woodside
Energy is in progress.

ROD Integrated Oil Field Development, Algeria (BHP Billiton 17.3%, joint
operating entity

comprising SONATRACH/BHP Billiton)

The drilling rig contract was put out to tender in February 2001 and awarded
in March and the contracts for casings and tubulars have been awarded. Further
drilling contract tenders (services/supply) are being progressed. Discussions
continue with the Ministry of Energy and Mines regarding the inclusion of the
RAR discovery as part of the ROD Integrated Development. Approval has been
received from SONATRACH, based on Ministry authorisation, for work to be
undertaken and expenditure incurred on the project prior to formal
governmental gazettal. First production from the ROD Integrated Development is
scheduled for first quarter 2003.



Typhoon, Gulf of Mexico, USA (BHP Billiton 50% interest, non-operated)

The Typhoon development, consisting of the subsea completion and tieback of
the four existing appraisal wells to a Tension Leg Platform (TLP), is being
developed jointly by Chevron (50 per cent, Operator) and BHP Billiton (50 per
cent). Peak production of 40,000 bopd and 60 mmscfd (gross) is expected, with
first production scheduled for third quarter 2001. The third (237-2) and
fourth (237-1) wells were completed in April and May 2001, respectively.
Construction of the TLP hull and topsides was completed at McDermott's yard in
Morgan City, Louisiana, and both were installed offshore in June. Installation
of flowlines and umbilicals began in June. The oil and gas pipelines have been
installed, commissioned, and made ready for production.

Zamzama Extended Well Test, Pakistan (BHP Billiton 37.5% EWT phase equity,
operated)

Production from the Zamzama EWT is reported in the BHP Billiton Production
Report.

MINERALS EXPLORATION

BHP Billiton's Minerals Exploration Group continued to carry out worldwide
grass-roots exploration, and is responsible for exploration and development
work related to existing mines. Apart from the ongoing exploration, activities
were focussed on the merger of the BHP and Billiton exploration portfolios.

The Junior Alliance Program (third party alliances and joint ventures) has
been greatly enhanced with the merger. This program emphasises equity
investment alliances to gain the widest possible exposure to the results of
third party funded exploration.

The two FALCONTM systems are continuing to fly extensive campaigns in Africa
and South America.

A highlight for the quarter was the discovery of the Impala pipe (mentioned
earlier) at Ekati, which has shown encouraging microdiamond results. This
target was based on follow-up drilling of a FALCONTM target.

Expenditure

Information related to Minerals exploration expenditure will be included in
the BHP Billiton FY2001 Profit Report, to be released 20 August 2001.



PETROLEUM EXPLORATION

Wells drilled during the quarter or in the process of drilling as at June 30
2001.
WELL       LOCATION              BHP Billiton EQUITY                STATUS
Atlantis-3 Green Canyon Block    44% BHP Billiton Operator          Drilling
           743, Gulf of Mexico                                      ahead.
Eva Eva    Secure Block,         41.18%, BHP Billiton - Repsol      Plugged and
South-1    Bolivia               (Operator)                         abandoned.
OHE-1      Boukhechba permit,    100%, BHP Billiton Operator*       Well at TD
           Algeria                                                  29 June.
                                 (*50% Farmout to Woodside not
                                 effective until Algerian 
                                 Government approval)
Planaire-1 WA-28-P, North West   16.67%, BHP Billiton -Woodside     Plugged and
           Shelf, Australia      (Operator)                         abandoned.
Spitfire-1 Block 2 (ab)          50%, BHP Billiton Operator.        Plugged and
           Trinidad                                                 abandoned.



MINERALS COMPETENCE AND RESPONSIBILITY

The following statements apply in respect of the information in this report
that relates to any stated Mineral Resources or Ore Reserves.

  * The information is based on and accurately reflects information compiled
    by the person named under each relevant section of the report
  * Each named person is either a Corporate Member or Fellow of The
    Australasian Institute of Mining and Metallurgy or the Australian
    Institute of Geoscientists, or a Recognized Mining Professional under the
    ASX listing rules, and is a full-time employee of a member company of the
    BHP Billiton Group;
  * Each named person has sufficient experience, which is relevant to the
    style of mineralisation and type of deposit under consideration and to the
    activity, which he or she is undertaking to qualify as a Competent Person
    as defined in the 1999 Edition of the 'Australasian Code for Reporting of
    Mineral Resources and Ore Reserves'. Each named person consents to the
    inclusion in the report of the matters based on their information in the
    form and context in which it appears.

Further information can be found on our Internet site: http://
www.bhpbilliton.com

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