Merger Update

BHP Billiton Limited
20 August 2001

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 announcement is identical to that issued by BHP Billiton Plc
                                   earlier.

News Release

Date: 17 AUGUST 2001

   BHP BILLITON AND ALCOA AGREE TO MERGE NORTH AMERICAN METALS DISTRIBUTION
                                  BUSINESSES


PITTSBURGH and MELBOURNE, AUSTRALIA, August 17, 2001 -- Alcoa Inc. and BHP
Billiton today announced agreement had been reached regarding the merger of
Alcoa's North American metals distribution business, Reynolds Aluminum Supply
Company (RASCO), with the BHP Billiton Group's North American metals
distribution business, Vincent Metals Goods in the U.S. and Atlas Ideal Metals
in Canada, collectively known as (NAMD).

Alcoa and BHP Billiton will each own 50 per cent of the independent company.
The combined company will have 3,000 employees and 90 metals distribution
service centres across North America. Combined revenues of the distribution
businesses would have been US$2.1 billion for the fiscal year 2000.

Chief executive officer of the new company, Harry Jones, said: 'We expect to
find opportunities to leverage technologies and synergies in processing
equipment, information systems, engineering, technical support and the
expertise of our combined workforces.' Mr Jones is currently CEO of NAMD.

Mike Goldberg, chief operating officer (COO) of NAMD, will be COO at the
new company. Everett Chesley, vice president of Finance at RASCO, will be
chief financial officer of the combined company.

Both shareholders as well as the executive management team are committed to
ensure that the new company benefits from strong leadership and employee
participation drawn equally from both companies.

Don Cowles, president of RASCO, noted that, 'The metals distribution/supply
chain management industry is in a period of change. We feel that combining
RASCO with NAMD will result in the best outcome for customers, employees,
suppliers and owners.' Mr. Cowles will chair the integration committee made up
of representatives from both companies.

The merger, subject to necessary regulatory approvals, is expected to close in
October 2001.

NAMD, headquartered in Minneapolis, Minnesota, is one of the largest
distributors of stainless steel and aluminum in North America, serving more
than 25,000 customers through 52 service centres in Canada and the United
States. BHP Billiton acquired NAMD in October 2000 as part of its acquisition
of Rio Algom Ltd.

RASCO is headquartered in Richmond Virginia and provides supply chain
management of aluminum, stainless steel and other specialty metals to more
than 15,000 customers through 38 locations across the United States, Canada
and Mexico. RASCO is an Alcoa company.

                                   * * * *

Editorial Contacts:

Joseph C. Vagi
Alcoa Inc.
804-281-4646

Francis McAllister
Tel: [phone]
Mobile: [phone]
email: [e-mail]

Investor Relations:

Charles D. McLane
Alcoa Inc.
212-836-2674

Francis McAllister, Investor Relations
Tel: [phone]
Mobile: [phone]
email: [e-mail]




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