Increase Metallurgical Coal

BHP Billiton Limited
01 September 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.



1 September 2004
Number:  29/04


              BHP BILLITON TO INCREASE METALLURGICAL COAL CAPACITY

                        TO 100 MILLION TONNES PER ANNUM

BHP Billiton today announced its intention to increase metallurgical coal
production capacity to around 100 million tonnes per annum (100 per cent basis)
by 2010*.

The increase in capacity will be achieved through high value incremental
expansions of the BHP Billiton Mitsubishi Alliance (BMA) and BHP Mitsui Coal Pty
Ltd (BMC) coal operations in Queensland, Australia and potential new
developments such as the Maruwai prospect in Kalimantan.

Options for expanding BHP Billiton's Illawarra coal business in New South Wales,
Australia are also under consideration.

Group President Carbon Steel Materials Bob Kirkby said the change in the rate of
growth in the global steel industry in recent years had created a significant
increase in demand for steel making raw materials, including seaborne
metallurgical coal.

'BHP Billiton and its partners are ideally placed to capture a significant share
of the forecast growth in the metallurgical coal market through the addition of
low cost, high value production capacity,' he said.

'Our resources and infrastructure are second to none, and the growth strategy
will build on the incremental expansion projects that are already underway in
Queensland and New South Wales.'

In March this year BHP Billiton outlined plans to increase capacity at the
Queensland coal operations from 52Mtpa to 57Mtpa by mid 2005. This project
included the purchase of additional mining equipment at several mines, upgrades
to the coal preparation plants at the Saraji and Peak Downs mines and the
awarding of 132 million bank cubic metres (Mbcm) of overburden stripping
contracts.

Mr Kirkby said the next stage of the Queensland coal expansion program had also
been approved as part of the overall growth strategy. The program will increase
production capacity to 59Mtpa by the second half of 2006.

Capital expenditure for this next stage is expected to be US$175 million (BHP
Billiton share US$87.5 million) and includes increasing throughput capacity at
the Hay Point Coal Terminal from 34Mtpa to 40Mtpa and the acquisition of
additional stripping equipment and mining equipment.

In order to facilitate the increased production, 32Mbcm of overburden stripping
contracts will be let at the Saraji mine.

*Production at the metallurgical coal mines owned by BHP Billiton, BMA and BMC
in FY2004 was 58 Mtpa (BHP Billiton share 34 million tonnes, excluding 20 per
cent outside equity interest in BMC). On completion of the expansion projects in
2010, BHP Billiton's attributable production capacity is expected to rise to in
excess of 60 Mtpa.

                                      ****

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

Australia                                                     United Kingdom
Jane Belcher, Investor Relations                              Mark Lidiard, Investor & Media Relations
Tel: [phone] Mobile: [phone]                  Tel: [phone]
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Tania Price, Media Relations                                  Ariane Gentil, Media Relations
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United States                                                 South Africa
Francis McAllister, Investor Relations                        Michael Campbell, Investor & Media Relations
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email: [e-mail]                   email: [e-mail]


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