Production Report - 31 May 99

BROKEN HILL PTY CO LTD
13 July 1999
        
                      BHP MINERALS
                 COAL OPERATIONS REPORT
           FOR THE 12 MONTHS ENDED 31 MAY 1999
                            
Production and Shipments

Coal production from the mines owned or operated by BHP Coal
during  the  twelve month period ended 31 May 1999  totalled
68.6  million tonnes - a decrease of 2.7 per cent  over  the
corresponding period in 1997/98.

Total  shipments/sales from nine coal mines in  Queensland's
Bowen  Basin, five in the Illawarra region of NSW, three  in
Kalimantan,  Indonesia and three mines in New  Mexico,  USA,
amounted to 68.25 million tonnes.

The  twenty coal mines are owned by BHP, or managed  by  BHP
Coal  on behalf of the mine owners - the CQCA Joint Venture,
the  Gregory  Joint Venture, BHP Mitsui  Coal  Pty  Ltd,  PT
Arutmin and PT Kendilo Coal, Indonesia.

Shipments  from  the  Queensland and NSW  mines  represented
around one quarter of Australia's total annual coal exports,
and  more  than  20 percent of the world's  annual  seaborne
trade in coking coal.

Coal Sales Revenue

Total  revenue  from  coal sales from the  Queensland,  NSW,
Kalimantan and NewMexico operations during the twelve month
period amounted to A$3.9 billion.

Operations

BHP's coal operations continued to be adversely affected  by
weaker  demand from world steel producers, and an oversupply
of  coal  on  international markets. This led to  heightened
competition  on price and tonnage from other coal  producers
within  and  outside of Australia. Production in  Queensland
was  also  interrupted  by  periods  of  unseasonable  heavy
rainfall.

BHP  responded to the downturn in global coal  markets  with
major   cost  reductions  in  all  parts  of  its  business.
Reductions  have centred around a broad range of  activities
including     production,    maintenance,     supply     and
administration. This has resulted in a reduction in employee
levels at Queensland and NSWoperations.

Productivity levels improved significantly during  the  year
with the introduction of more efficient work practices,  the
elimination of non-value adding activities, and the  reduced
workforce.  Performance will be further  enhanced  with  the
commissioning  in  2000 of a new large dragline  in  Central
Queensland, following commencement of construction  in  June
1998.

Consistent with the company's policy to dispose of  non-core
assets,  BHP sold its 50 percent interest in the  Chinchilla
East  thermal coal deposit in Queensland's Surat Basin,  and
appointed a preferred bidder for the proposed sale of its 80
percent  interest  in  the Moura open cut  mine  in  Central
Queensland.

Government  Share of Income for the Year ended 31  May  (Qld
Operations)

Government  share  ofincome for the twelve  months  period,
excluding corporate income tax, amounted to $427.4  million.
Total  Queensland rail freight paid was $299.7  million,  of
which  the railway operating cost component is estimated  to
be $180.1 million.

($ millions)                                   1999    1998

State Government

   Royalties                                   113.3   125.6
   Special Royalties  (.)                      153.2   192.8
   Payroll Tax                                  17.5    23.1
   Queensland Government profit included
   in rail freight charges (estimated)         119.6   141.1
                                               -----   -----  
   Sub Total                                   403.6   482.6

Federal Government

   Coal Research and Long Service Leave Levies  13.1    16.2
   Fringe Benefits Tax                          10.7    11.9
                                                ----    ----
   Sub Total excluding income tax (:)           23.8    28.1

Total Government Share of Income 
excluding  income  tax                         427.4    510.7
-------------------------------------------------------------
(.) The  State Government has announced it will introduce  a
    new  standard royalty payment of 7 percent for  all  Qld
    coal  producers from 1 July, 2000, which will  eliminate
    special  royalties.   A  transitional  arrangement  will
    apply  from  1  April, 1999 for companies  paying  above
    this  level,  which  comprises the  standard  7  percent
    royalty,  plus a uniform special royalty  of  $3.00  per
    tonne  on  production  previously above  the  7  percent
    rate.

(:) Income tax paid by the Queensland joint venture
    participants is estimated to be in the order
    of several hundred million dollars, but is not
    readily ascertainable because of the different ownership
    structures.

                              
   Total Coal Shipments (thousands of tonnes)
   
   Twelve Months Ended 31 May
                        
                                   1999     1998    % Inc
                                                    (Dec)
                                                   
CQCA Joint Venture
   Blackwater                     5,802     4,297   35.0
   Goonyella                      7,342     7,460   (1.6)
   Peak Downs                     6,490     6,702   (3.2)
   Saraji                   4,903     4,714    4.0
   Norwich Park                   3,522     5,100  (30.9)
                               --------------------------   
Sub Total CQCA                   28,059    28,273   (0.8)

Gregory Joint Venture                              
   Gregory/Crinum                 4,038     4,400   (8.2)
BHP Mitsui Coal                                    
   Moura                3,526     3,951  (10.8)
   Riverside                      2,798     3,077   (9.0)
   Sth Walker Creek               2,068     1,267   63.2
                               --------------------------
Sub Total BHP Mitsui Coal         8,392     8,294    1.2
                               --------------------------
Total Qld Operations             40,490    40,968   (1.2)
--------------------           --------------------------
Mt Owen, NSW *                       -      3,119 (100.0)
Illawarra Collieries              7,005     7,434   (5.8)
Indonesian Operations (.)         6,771     5,852   15.7
New Mexico Operations **         13,988    13,043    7.2
TOTAL BHP COAL                   68,254    70,416   (3.1)

*   Mt Owen mine was sold to interests led by Glencore
    International AG in May 1998.
(.) After 13.5% share to Indonesian Government
**  BHP's Western US coal operations became part of the BHP
    Coal Group in August 1998.  They comprise three thermal
    coal mines in New Mexico supplying mine mouth power
    plants.


    Shipments by Destination (thousands of tonnes)

    Twelve Months Ended 31 May
    --------------------------
    1999    %       1998     %
                               ----    --      ----     --
Japan                         15,397   22     16,553    22
Europe                        13,377   20     11,126    16
India/Other Asia              12,274   18     14,628    21
South America                  3,177    5      3,255     5
Australia                      8,582   13      9,113    13
USA               13,988   20     13,033    19
Other                          1,459    2      2,708     4
                              ----------------------------
TOTAL                         68,254  100     70,416   100
-----                         ----------------------------


Mine and Port Ownership

Central Queensland Coal Associates (CQCA) Joint Venture

CQCA owns the Blackwater, Goonyella, Peak Downs, Saraji  and
Norwich  Park mines in the Bowen Basin, and the coal  export
terminal of Hay Point.

Central  Queensland  Coal  Associates  is  a  joint  venture
between the following participants:

                                       %
                                          
     BHP                             52.10
     QCT Resources                   32.37
     Mitsubishi Development          15.53
                                    ------
                                    100.00

Gregory Joint Venture

The  Gregory Joint Venture owns the Gregory and Crinum mines
and comprises the following participants:

                                       %
                                          
     BHP                             64.14
     QCT Resources                   32.37
     Mitsubishi Development           3.49
                                    ------
                                    100.00

BHP Mitsui Coal

BHP Mitsui Coal Pty Ltd owns the Central Queensland mines of
Moura, Riverside and South Walker Creek.

Participating shareholders of BHP Mitsui Coal  Pty  Ltd  are
BHP (80%) and Mitsui & Co (20%).

BHP

BHP  owns  five  underground mines comprising BHP  Illawarra
Collieries NSW, and three opencut mines in the Four  Corners
area in New Mexico, USA.

PT Arutmin Indonesia

PT  Arutmin  (BHP 80%, PT Bakrie Bros 20%) operates  Senakin
and  Satui  mines and the North Pulau Laut Coal Terminal  in
Kalimantan.

PT Kendilo Indonesia

PT  Kendilo  (BHP  80%; Mitsui Mining  Japan  20%)  operates
Petangis mine in Kalimantan.

                        * * * * *

For information contact:   Ian Dymock
                           Manager Public Affairs
                           BHP Coal Pty Ltd - Brisbane
                           Tel :  [phone] (bh)