Qtr Expl/Dev Rpt Q/E 30/6/02

BHP Billiton Limited
26 July 2002

     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.




26th July 2002
Number: 44/02



BHP BILLITON QUARTERLY REPORT ON EXPLORATION AND DEVELOPMENT ACTIVITIES

                             April 2002 - June 2002



This report covers exploration and development activities for the quarter ended
30 June 2002. 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%)

Construction Work on the 253,000 tonne per annum Mozal II aluminium smelter
project continued with steady progress during the quarter and remains on
schedule for initial production towards the end of 2003. On site earthworks,
drainage and piling is completed, civil work is almost completed and structural
steel erection is continuing as is building cladding. At the end of June 2002,
overall construction progress had reached 41 per cent. The mobilisation of
mechanical, electrical and instrumentation contractors continues with the first
major equipment now being installed. Commitments totalling over 95 per cent of
the project budget of US$860 million (BHP Billiton share US$405 million) have
been made and the project remains within budget.

BHP Billiton manages the project on behalf of the share holders in Mozal
S.A.R.L. who are BHP Billiton 47.11 per cent, Mitsubishi Corporation 25 per
cent, IDC (South Africa) 24.04 per cent and the Government of Mozambique 3.85
per cent.

Hillside Expansion, South Africa

Main construction work on the 130,000 tonne per annum Hillside III aluminium
smelter project commenced on 1 April 2002. At the end of June, earthworks and
drainage were substantially completed and piling was well advanced. The initial
civil works contracts have commenced and overall construction progress is at
five per cent at the end of June. All long lead-time items of equipment have
been ordered and all critical path activities are in place to allow for the
first hot metal to be cast in April 2004. Commitments totalling approximately 60
per cent of the project budget of US$449 million have been made and the project
is on schedule and budget.


Base Metals

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

BHP Billiton and its joint venture partners in the Escondida copper mine in
northern Chile continued development activities for the Escondida Phase IV
development project during the quarter. The Phase IV expansion will increase ore
processing capacity by 85 per cent resulting in an average additional copper
production of 400,000 tonnes per annum (average total production of 1.2 million
tonnes per annum) over the first five years.

The development has an estimated capital cost of US$1,045 million (BHP Billiton
share US$600 million).  The project continues to generally advance in accordance
with the planned schedule. As of the end of June, construction had achieved 94
per cent complete against the plan of 91 per cent. Major unit operations are
nearing mechanical completion and are advancing through the pre-commissioning
phase. Of particular note is the turnover to operations of the Laguna Seca water
reclaim, the new primary crusher, Coloso filter plant, and ship loading
facilities at Coloso.  Project mechanical completion is on track for September
2002 with full production expected to be achieved by April 2003.


Tintaya Oxide Project, Peru (BHP Billiton 99.9%)

Construction and commissioning of the Tintaya Oxide project was completed this
quarter. The project achieved mechanical completion as defined in the contract
with the EPCM contractor on 22 March 2002.  This was 4 weeks and 2 days ahead of
schedule. The project produced its first cathode in early April and reached
design production levels in July, one month ahead of schedule. The project is
currently being closed out and has been handed over to operations. The project
was completed below budget with final capital cost of US$120 million versus a
budget of US$138 million.  The project also completed the entire construction
phase without any lost time accidents in over 2.8 million manhours worked.

Carbon Steel Materials

Blackwater Integration Project, Australia (BHP Billiton 50%)

The project involves the creation of a single mining entity, combining the South
Blackwater open cut operations with the Blackwater mine to produce an estimated
13.5 million tonnes of coking and thermal coal per year. As at the end of June,
integration and construction activities are substantially complete and have been
commissioned with the delivery of some further mining equipment the only
outstanding activities. Now that the annualised production target of 13.5 milion
tonnes has been met the project is essentially completed and is under the
authorised capital budget US$64 million (BHP Billiton share US$32 million).



Dendrobium Coal Project, Australia

The Dendrobium Mine will be a low cost underground longwall operation capable of
producing 5.2 mtpa of raw coal resulting in 2.6 mtpa of coking coal and 1mtpa of
thermal coal. The main customer for the coking coal is the Port Kembla
steelworks located only 7km from the mine site.

Construction activities are underway at all of the three main sites covering the
coal loading facilities (Kemira Valley), mine surface facilities (Dendrobium)
and ventilation shaft. Underground tunnelling at both the Dendrobium and Kemira
Valley locations commenced in May after the successful completion of both
portals. Approximately US$55 million has been committed to date. The capital
forecast and longwall startup schedule remain unchanged at US$170 million and
May 2005 respectively.

Mining Area C Project, 'C Deposit', Australia (BHP Billiton 85%)

Project approvals were achieved at the beginning of the quarter and the project
has transitioned to implementation mode. The project provides for the
development of a mine, processing plant, 38 kilometre rail spur and associated
infrastructure for an operation to build up to 15 mtpa at Mining Area C, which
is situated approximately 120 kilometres from Newman in Western Australia's
Pilbara region. The capital cost is estimated to be US$123 million (BHP Billiton
share US$181 million).

Currently detailed engineering is in progress and contract and procurement
packages are being tendered and awarded. During the quarter work has continued
with the extraction and shipment of bulk sample material.

A joint venture has been signed with POSCO of South Korea for the development of
the 'C Deposit' section of Mining Area C whereby POSCO will take a 20 per cent
interest in the deposit.



Port & Capacity Expansion Project (PACE), Australia (BHP Billiton 85%)

The scope of the project provides for the upgrade of the BHP Billiton rail and
port facilities in a staged process to meet forecast increase in sales of iron
ore over the next decade. The approvals cover the first stage of PACE, which
will increase capacity to 81mtpa by 2004. Further stages will provide for
capacity levels to exceed 90 mtpa. The estimated capital cost for Stage 1 is
US$351 million (BHP Billiton share US$299 million).

Following approvals the project has transitioned to implementation mode.
Detailed engineering is in progress and contract and procurement packages are
being tendered and awarded.

Energy Coal

Mount Arthur North, Australia

The Mount Arthur North Mine will be capable of producing up to 15 million tonnes
of raw thermal coal per annum when full production is achieved in 2006. The
project is on schedule. Commitments during the quarter ending June 2002 were
US$66 million, with total commitments at June 2002 of US$275 million. Capital
expenditure for the quarter was US$45 million. The project has completed its
12th month of an anticipated 32-month construction period. Forecast cost to
completion is US$411 million.

Construction activities are ramping up on site with the completion of
Engineering activities in Brisbane and the delivery of procured items of
equipment to site. Mining equipment deliveries have commenced and some equipment
is already in operation.

San Juan Underground, USA

Surface facilities construction for the project has been completed and the
general contractor has demobilized. Development mining underground continues
with 85% of the development complete. All major equipment has been received. The
longwall has been erected on the surface and testing is nearly complete.
Longwall installation underground will begin during mid July. Start-up of the
longwall is expected by November 2002. Project spending is forecast to be on
budget at US$146 million.

PETROLEUM DEVELOPMENT

Bream Pipeline, Australia (BHP Billiton 50%, non operated)

Offshore pipeline installation commenced in early June and is approaching
completion. The HDD shore crossing was successfully completed mid-June, and
onshore tie-in work has commenced. Materials for the first phase of modification
work on the platform are ready for mobilization offshore, and platform
preparation work commenced July 4th. First gas and gas-liquids production are
scheduled for mid calendar 2003.

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

The project involves the drilling of two new infill subsea wells to accelerate
production and access incremental reserves from the Laminaria oil field.
Production from the project commenced in early June with initial daily
production from the two wells at expected production forecast rates.



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

Construction of the fourth liquefaction processing train is 41% complete and on
schedule. The second trunkline is 16% complete as per schedule, with
construction of cables and tubing works commencing on the North Rankin
production platform in June. Pipe lay is expected to commence late 2003 with
commissioning planned for early 2004.

Minerva (BHP Billiton 90%, operated)

In May approval was announced for the development of the Minerva gas field in
the offshore Otway Basin, Victoria, following the signing of a take or pay Gas
Sales Agreement with Pelican Point Power Ltd for the provision of Minerva gas
over a 10 year period. The development involves the drilling and installation of
two subsea well completions, an offshore pipeline to the coast, subterranean
shore crossing and the transport of the gas to an onshore gas processing
facility where liquids will be removed prior to exporting the gas. BHP
Billiton's share of the capital expenditure for the development will be around
US$123 million. First gas is scheduled for the first quarter 2004. A Lump Sum
Turn Key contract for engineering and construction of the flowlines and gas
plant has been awarded to a joint venture comprising McConnell Dowell
Constructors (Australia) and Saipem (Portugal). A separate lump sum contract has
been awarded to Cooper Cameron Singapore Pte Ltd for the design and manufacture
of the subsea trees. Work is progressing on the development.


Zamzama Field Development, Pakistan (BHP Billiton 38.5%, operated)

In March approval was announced for the development of the Zamzama Gas Field,
following the signing of separate Gas Sales and Purchase Agreements and a Gas
Pricing Agreement with the Government of Pakistan, the Sui Southern Gas Company
Limited and Sui Northern Gas Pipelines Limited. The agreements cover the supply
of up to 320 million standard cubic feet per day of gas over a period of 20
years, with production commencing in the third quarter of 2003. The development
is being executed on a fast track basis. It will include drilling at least three
producing wells and the construction of two additional 140MMscfd processing
trains. The drilling of the first well should commence mid July 2002. The basic
engineering design and the tendering process for the equipment packages and
materials with long lead delivery times are complete. Facilities construction is
ongoing and the project is on track to meet all its objectives.

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

The OHANET Development consists of the development of four gas-condensate
reservoirs in the Illizi Basin in southern Algeria. The project will provide a
gas treatment facility of 20 million standard cubic metres per day fed by 47
production wells, of which 32 will be new and 15 will be re-completions of
existing oil producers. 3D seismic data acquisition across all reservoirs was
completed in June 2001 and the data has been processed and incorporated into the
reservoir models. By the end of June 2002 a total of 21 new wells had been
drilled and completed and seven existing wells had been re-completed. Facilities
engineering is effectively complete and the majority of equipment and bulk
materials are now delivered at site. Overall construction progress is 54%, with
94% of all equipment at site and 64% already installed. First production remains
scheduled for late 2003.

ROD Integrated Development, Algeria (BHP Billiton 35.1%, joint operating entity
comprising SONATRACH/BHP Billiton)

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. Thirty-six development wells will be required, 10 of which will
be recompletions of already drilled wells. The first development well commenced
drilling in November 2001; at end-June 2002 the rig was working on the fifth
development well. Critical long lead engineering items are progressing to
schedule. The EPC (Engineer/Procure/Construct) contract with Saipem/Bouygues was
formally signed on 13 April 2002 and engineering work is now fully underway. It
is anticipated that site preparation will commence in September 2002. First
production is scheduled for end first quarter 2004.

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

In February BHP Billiton acquired a 25% interest in the Caesar oil pipeline and
a 22% interest in the Cleopatra gas pipeline. BHP Billiton's share of the
capital costs for these new-build projects is estimated at $100 million.
Detailed engineering continues for both systems, which will transport product
from the Mad Dog and Atlantis fields to pipelines closer to shore. Commissioning
is expected in 2004.

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, approving
up to US$335 million for development of the Gulf of Mexico oil and gas field.
Detailed engineering work is underway. First production is expected at the end
of calendar year 2004.

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

In May BHP Billiton approved up to US$355 million to progress the development of
the Atlantis field in the Gulf of Mexico. Detailed engineering work is underway,
and full project approval is expected later this year.



MINERALS EXPLORATION

The exploration group of BHP Billiton Minerals continued to pursue global
exploration opportunities for key commodities of interest to the group utilising
both the Junior Alliance Program and in house generative capabilities. This has
lead to continued growth and diversification in the exploration portfolio and
increased quality exploration opportunities.

A third FALCONTM platform arrived in Australia and has commenced flying selected
projects and areas. The other two units remain employed in South America and
Africa.



PETROLEUM EXPLORATION

Exploration and appraisal wells drilled during the quarter or in the process of
drilling as at 30 June 2002.

WELL                         LOCATION                     BHP Billiton EQUITY          STATUS

Canteen-2                    Trinidad Block 2(c)          45% BHP Billiton Operator    Hydrocarbons encountered.

                                                                                       Plugged and abandoned.
Angostura-2                  Trinidad Block 2(c)          45% BHP Billiton Operator    Hydrocarbons encountered.

                                                                                       Plugged and abandoned.
Mokatika-1                   Trinidad Block 2(c)          45% BHP Billiton Operator    Plugged and abandoned as a dry
                                                                                       hole.
Boris North-1                Gulf of Mexico,              50% BHP Billiton Operator    Total depth at June 30 is 7143'.

                             Green Canyon 282
Cascade-1                    Gulf of Mexico, Walker Ridge 50% BHP Billiton Operator    Temporarily suspended.
                             206                                                       Encountered hydrocarbons.

                                                                                       See News Release of 3 June.
Atlantis-4*                  Gulf of Mexico,              44% BHP Billiton;            Spud on 1 July.

                             Green Canyon 743             Operator: BP                 *Drilling commenced in September
                                                                                       quarter.
Neptune-3*                   Gulf of Mexico,              50% BHP Billiton Operator    Hydrocarbons encountered.

                             Atwater Valley 617                                        Plugged and abandoned.

                                                                                       *Drilling completed in September
                                                                                       quarter. See News Release of 18
                                                                                       July.
Serra do Moco-1*             Angola, Block 22             15% BHP Billiton;            Plugged and abandoned as a dry
                                                                                       hole.
                                                          Operator: Texaco
                                                                                       *Drilled in March quarter.





Expenditure

Information related exploration expenditure will be included in the BHP Billiton
full year results, to be released on 7 August 2002.

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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