Expl & Dev Rpt QE 30 June 04

BHP Billiton Limited
28 July 2004

     BHP Billiton Limited is issuing this announcement to fulfil disclosure
  obligations arising from its secondary listing on the London Stock Exchange.

    The text of this release is identical to that issued by BHP Billiton Plc
                                    earlier.


Date                 28 July 2004
Number               25/04


                  BHP BILLITON QUARTERLY REPORT ON EXPLORATION

                           AND DEVELOPMENT ACTIVITIES

                             April 2004 - June 2004


This report covers exploration and development activities for the quarter ended
30 June 2004. Unless otherwise stated, BHP Billiton's interest in the projects
referred to in this report is 100 per cent, and references to quarters are based
on calendar years.

Of the 14 projects that were under construction during the quarter, 12 are
within Board approved expenditure limits and are tracking on or ahead of
schedule. (Refer to comments on Dendrobium Coal Project on page 3.) The
exceptions are Minerva and the ROD Integrated development. The Panda
Underground, the Worsley Development Capital and the Escondida Sulphide Leach
projects have received Board approval during the quarter.


PETROLEUM DEVELOPMENT

North West Shelf expansion, Australia (BHP Billiton 16.67%, non operated)

Overall progress on the fourth liquefaction processing train is 96 per cent
complete. At the end of June the construction phase was nearly complete, with
pipe and vessels insulation still to be finished. Commissioning is 90 per cent
complete. The second trunkline was commissioned in mid February 2004. The
project remains on budget (BHP Billiton's share of capital expenditure is US$247
million).

Mad Dog Development, Gulf of Mexico, USA (BHP Billiton 23.9%, non-operated)

BHP Billiton announced its sanction of the Mad Dog field in February 2002,
approving up to US$335 million for the development of this Gulf of Mexico oil
and gas field. The sanctioned facility has been designed to produce at a daily
rate of 80,000 barrels of crude oil and 40 million cubic feet of natural gas. At
the end of June, work on the topsides continued on track with its offshore lift
onto the hull, which was successfully installed at its offshore location in
February. The project remains on budget and on schedule for targeted first
production by the end of 2004.

Greater Angostura Development, Trinidad (BHP Billiton 45%, operated)

In March 2003, BHP Billiton approved US$327 million for the first development
phase of the Greater Angostura oil and gas field off the northeast coast of
Trinidad. During the quarter, fabrication of onshore facilities continued,
including oil storage tanks, pipelines and associated infrastructure.
Fabrication/manufacture is complete on the loading buoy, pipeline end manifold
and associated anchors, chains and hoses, which have all been received in
Trinidad. All four wellhead protector platforms and the jacket for the central
processing platform have also been completed and installed offshore. The
remaining offshore facilities are being completed and offshore pipeline
installation is in progress. The project remains on budget and on schedule for
first oil production by the end of 2004.

ROD Integrated Development, Algeria (BHP Billiton 36.04%, joint operating entity
comprising BHP Billiton/SONATRACH)

The ROD Integrated Development consists of the development of six satellite
oilfields in the Berkine Basin in eastern Algeria. The project will produce
80,000 barrels of Sahara Blend crude oil per day, with associated gas being
reinjected into the reservoir together with water to provide pressure support to
the reservoir. The development drilling has been concluded and a total of 34
development wells are currently available for production operations. As at the
end of June over 6.75 million workhours have been completed at the construction
site without a Lost Time Incident. Overall project progress is 93 per cent
complete. Lower than planned productivity at the construction site has impacted
progress and first oil is now scheduled for fourth quarter 2004. The project is
expected to be delivered within the original budget. BHP Billiton's share is
US$192 million.

Minerva, Australia (BHP Billiton 90%, operated)

Engineering design on the Minerva development is approaching completion,
procurement activities are well advanced and major packages are being delivered
to site. On site, foundations and concrete works are almost complete and
mechanical and electrical installation activities are underway. All other parts
of the Minerva Development are now ready to produce, with the Minerva 3 and 4
wells completed, onshore and offshore flowlines installed, and all tie-ins made
from the wellhead through to the gas plant. Initial production is expected in
the fourth quarter of 2004, and BHP Billiton's share of capital expenditure is
US$150 million.

Caesar/Cleopatra Transportation Systems, Gulf of Mexico, USA (BHP Billiton
interest in Caesar pipeline, 25%; interest in Cleopatra pipeline, 22%.
Non-operated)

BHP Billiton acquired a 25 per cent interest in the Caesar oil pipeline and a 22
per cent interest in the Cleopatra gas pipeline, which will transport product
from the Mad Dog and Atlantis fields to pipelines closer to shore. Construction
of the system to the Mad Dog field is complete. During the quarter, risers
connecting the hull of the Mad Dog production facility to the Caesar and
Cleopatra pipelines were installed. Expenditure of up to US$132 million has been
approved by the Board for this project. The project is on budget and on schedule
to begin operation with first production at third-party facilities, in advance
of first hydrocarbon production from Mad Dog and Atlantis.

Atlantis Development, Gulf of Mexico, USA (BHP Billiton 44%, non-operated)

BHP Billiton completed full capital allocation for the Atlantis project in
February 2003. Our share of total project expenditure is US$1.1 billion. The
sanctioned facility is designed to produce at a daily rate of up to 150,000
barrels of crude oil and 180 million cubic feet of natural gas. During the
quarter, batch setting operations were completed for the initial 15 wells of the
development. The hull entered the dry-dock, and the topsides' lower and upper
sections for each module were moved to the outdoor erection site for the
completion of further work on these facilities. The project remains on budget
and on schedule for first production in the third quarter of 2006.


MINERALS DEVELOPMENT

Aluminium

Worsley Alumina Development Capital Projects (DCP), Australia (BHP Billiton 86%)

The Worsley Alumina Development Capital Projects (DCP) was approved in May 2004
for an amount of US$192 million (US$165 million BHP Billiton share). The project
will increase alumina production by 250,000 tonnes per annum (215,000 tonnes per
annum BHP Billiton share) to a capacity of 3.5 million tonnes per annum (3.01
million tonnes per annum BHP Billiton share). Engineering and procurement
activities have commenced. Civil and piling contractors have commenced
construction work and are progressing on schedule. Commissioning of DCP is
scheduled for the first quarter of 2006.

Base Metals

Escondida Norte, Chile (BHP Billiton 57.5%)

The development of the Escondida Norte pit, located approximately 5 kilometres
north of the existing Escondida mining operations, was approved in June 2003.
Pre-mine waste stripping continued during the quarter, using both contractor and
Escondida equipment, with a third truck-shovel fleet commencing during June
2004. Total material movement in the pre-mine to the end of June 2004 was 47.9
million tonnes. Construction development during the period involved the partial
erection of the mine fleet maintenance work shop, commencement of the crusher
foundation area and its associated retaining wall, partial construction of the
overland conveyor alignment and near completion of the light vehicle access
road. Pre-mine development, design and construction activities are currently on
track to meet first ore delivery to the crusher in the fourth quarter of 2005.
Development costs are estimated at US$400 million (BHP Billiton share US$230
million).


Escondida Sulphide Leach, Chile (BHP Billiton 57.5%)

The Escondida Sulphide Leach project was approved in April 2004. The project
will produce 180,000 tonnes (103,500 tonnes BHP Billiton share) of copper
cathode per annum, utilising a bacterially assisted leaching process on
low-grade run-of-mine ore from both the Escondida and Escondida Norte pits. The
resulting solutions will then be treated in conventional solvent extraction and
electrowinning plants. Detailed engineering is underway and preliminary site
work has started to develop the temporary construction facilities. Development
costs are estimated at US$870 million (US$500 million BHP Billiton share) and
production is scheduled to begin during the second half of 2006.

Carbon Steel Materials

Dendrobium Coal Project, Australia

The Dendrobium Mine will be a low cost underground longwall operation capable of
producing 5.2 Mtpa of raw coal (3.6 Mtpa of clean coal). Board approved capital
expenditure is US$170 million. Construction activities associated with the mine
surface facilities, ventilation shaft, washery upgrade and Kemira Valley Rail
Coal Loading facilities have been completed and successfully commissioned.
Construction activities associated with the thermal drier are well underway. The
majority of the project's remaining work is related to the underground drivage
required to install and commission the longwall. All mining units have passed
through the zone where difficult mining conditions had been experienced during
the last quarter and are producing at expected rates. A review of project costs
is currently underway. We continue to expect longwall commencement in the middle
of 2005.

Diamonds and Specialty Products

Panda Underground Project, EKATI Diamond Mine, Canada (BHP Billiton 80%,
Operated)

The Panda Underground Project was approved in May 2004. The project is a 2,600
tonnes per day sublevel retreat mine that will deliver approximately 4.6 million
tonnes of ore and 4.7 million carats of high value Panda diamonds to the EKATI
process plant over a 6 year production life. The project was initiated in July
2003 to fast track its development and prepare for delivery of critical material
on the 2004 ice road. Overall project progress is 29 per cent complete. The
capital cost for the project is expected to be US$182 million (BHP Billiton
share US$146 million), with first ore production on schedule for early 2005.

Stainless Steel Materials

Ravensthorpe Nickel Project, Australia

The Ravensthorpe Nickel Project was approved in March 2004. The project includes
the development of a mine, treatment plant and associated infrastructure near
Ravensthorpe in Western Australia. The Ravensthorpe processing plant will
produce a mixed nickel-cobalt hydroxide intermediate product (MHP). Engineering
and procurement are proceeding on schedule including the construction
management, autoclaves, acid plant and construction camp contracts. Site
activities have commenced at Ravensthorpe. The capital cost for the project is
expected to be US$1.05 billion, with the first shipment of MHP from Ravensthorpe
expected by the second quarter of 2007.


Yabulu Extension Project, Australia

The Yabulu Extension Project was approved in March 2004. The metal refining
section of the QNI Yabulu refinery near Townsville in Queensland is being
expanded to process up to 220,000 tonnes of mixed nickel-cobalt hydroxide
intermediate product (MHP). This additional processing capacity will increase
refinery production to 76 000 tonnes of nickel and 3 500 tonnes of cobalt.
Engineering and procurement activities are proceeding on schedule. The capital
cost for the project is expected to be US$350 million, with first nickel metal
production from the expanded Yabulu refinery expected by late 2007.



PETROLEUM EXPLORATION

Exploration and appraisal wells drilled during the quarter or in the process of
drilling as at 30 June 2004.

WELL                    LOCATION        BHP         STATUS
                                        BILLITON
                                        EQUITY
Stybarrow-3/4 side      Australia,      50% BHP     Plugged and abandoned.
track                   WA-12-R         Billiton    Hydrocarbons encountered.
                        Carnarvon       operator    See News@BHP Billiton release of 19 July 2004.
                        Basin
Ravensworth-2           Australia,      71% BHP     Plugged and abandoned.
                        WA-12-R         Billiton    Hydrocarbons encountered.
                        Carnarvon       operator
                        Basin
Crosby-2                Australia,      71% BHP     Plugged and abandoned.
                        WA-12-R         Billiton    Hydrocarbons encountered.
                        Carnarvon       operator
                        Basin
Eskdale-2 (Updip)       Australia,      50% BHP     Plugged and abandoned.
                        WA-255-P        Billiton    Hydrocarbons encountered.
                        Carnavaron      operator    See News@BHP Billiton release of 19 July 2004.
                        Basin
Stickle-1               Australia,      71% BHP     Plugged and abandoned.
                        WA-12-R         Billiton    Hydrocarbons encountered.
                        Carnavaron      operator
                        Basin
Harrison-1              Australia,      71% BHP     Plugged and abandoned.
                        WA-12-R         Billiton    Hydrocarbons encountered.
                        Carnavaron      operator
                        Basin
Knott-1                 Australia,      50% BHP     Plugged and abandoned.
                        WA-255-P        Billiton    Dry Hole. See News@BHP Billiton release of 19
                                        operator    July 2004.
MLA_A6a                 Australia, Bass 50% BHP     Plugged and abandoned.
(Turrum appraisal well  Strait Vic L/   Billiton;   Hydrocarbons encountered.
drilled from Marlin     3               Esso
platform)                               Australia
                                        operator
West Whiptail-1         Australia, Bass 50% BHP     Plugged and abandoned.
                        Strait, Vic/    Billiton;   Hydrocarbons encountered.
                        L10             Esso
                                        Australia
                                        operator
Neptune-7               Gulf of Mexico, 35% BHP     Encountered a hydrocarbon column with
                        Atwater Valley  Billiton    approximately 114 feet of net oil pay. See
                        618             operator    News@BHP Billiton release of 20 April 2004.
Mad Dog Deep            Gulf of Mexico, 23.9% BHP   Temporarily abandoned.
                        Green Canyon    Billiton;
                        826             BP
                                        operator
Shenzi-2 & side         Gulf of Mexico, 44% BHP     Plugged and abandoned.
tracks                  Green Canyon    Billiton    Encountered hydrocarbon column with approximately
                        653             operator    500 feet of net oil pay. See News Release of 12
                                                    November 2003.
Shenzi-3                Gulf of Mexico, 44% BHP     Drilling ahead.
                        Green Canyon    Billiton
                        653             operator
Kansas-3                Gulf of Mexico, 22% BHP     Plugged and abandoned.
                        Atwater Valley  Billiton;
                        288             Marathon
                                        operator
Starlifter-1            Gulf of Mexico, 30.95% BHP  Drilling ahead.
                        West Cameron    Billiton;
                        77              Newfield
                                        operator
Zebra-1                 Philippines,    28.1% BHP   Plugged and abandoned.
                        SC-41           Billiton;   Dry Hole.
                        Sandakan        UNOCAL
                        Basin           operator





MINERALS EXPLORATION

The minerals exploration group of BHP Billiton continued to pursue global
exploration opportunities for key commodities of interest to the group utilising
both the Junior Alliance Program and in-house capabilities.

The bulk sampling programme on the BHP Billiton Qilalugaq property near Repulse
Bay, Nunavut, Canada (BHP Billiton 100%), has been completed. Processing of the
sample is underway. Diamond drill testing of previously defined targets
commenced on time and is on-going. Till sampling, Falcon and Dighem airborne
surveys are underway on the remainder of the property to define additional
targets.

EXPLORATION EXPENDITURE

During the quarter, BHP Billiton spent US$49 million on minerals exploration, of
which US$46 million was expensed, and US$128 million on petroleum exploration,
of which US$78 million was expensed.


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

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