Qtr Rpt on Expl & Dev

BHP Billiton Limited
25 January 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.



Date: 25 January 2002

Number: 03/02



                  BHP BILLITON QUARTERLY REPORT ON EXPLORATION

                           AND DEVELOPMENT ACTIVITIES

                         September 2001 - December 2001

This report covers exploration and development activities for the quarter ended
31 December 2001. Unless otherwise stated, BHP Billiton's interest in the
projects referred to in this report is 100 per cent.


        MINERALS DEVELOPMENT

        Aluminium

Mozal II Expansion, Mozambique (BHP Billiton 47.11% interest)

Construction work on the 253,000 tonne per annum Mozal II aluminium smelter
project continued during the quarter and remains on schedule for initial
production towards the end of 2003. On site, piling is nearing completion,
concrete foundations are progressing to plan and at the end of December 2001,
overall construction progress had reached nine per cent. The erection of first
structural steel is scheduled for January 2002. Commitments totalling over 65
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 shareholders 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.

Base Metals

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

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 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 first major milestone of the project has been
achieved with the commencement of commissioning of the new Laguna Seca tailings
facility. The installation of major mechanical equipment has commenced which
includes the SAG mill and ball mills as well as flotation cells. At the end of
December 2001 the project was over 50 per cent complete. 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% interest)

Construction of the Tintaya Oxide project continued during the quarter. The
Oxide project will increase Tintaya capacity by 38 per cent with a cathode
capacity of 34,000 tonnes per annum. The development has an estimated capital
cost of US$138 million. Bulk earthworks and concrete works are practically
complete. Mechanical and structural installation works are 95 per cent complete,
and piping and electrical installation is well advanced. Pre-commissioning
activities have started and all operational personnel have been hired. The first
acid deliveries were received in December. The project is currently on schedule
and on budget. First cathode production is expected in mid 2002 with full
production to be achieved by mid 2002.

Carbon Steel Materials

Blackwater Integration Project, Queensland, Australia (BHP Billiton 50%
interest)

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. A new fleet of eight
300-tonne haul trucks was commissioned on schedule in November 2001, and further
mining equipment including dozers and coal haulers were ordered for delivery
during 2002. A new haul road linking the two mines was completed in December
2001. Construction of a new industrial facility is progressing on schedule for
completion in April 2002. Various other smaller infrastructure projects have
been completed on schedule and within budget.

The annualised sales rate for the period July to December 2001 reached 13.3
million tonnes per annum. Ramp up will continue in the March 2002 quarter. Total
project capital remains on target of US$64 million (BHP Billiton share
US$32million).

Dendrobium Coal Project, New South Wales, Australia

The Dendrobium Mine will be a low cost underground longwall operation capable of
producing 5.2 million tonnes per annum (mtpa) of raw coal resulting in 2.6mtpa
of coking coal and 1mtpa of thermal coal. The main customer for the coking coal
is the BHP Steel Port Kembla steelworks located only seven kilometres from the
mine site. New South Wales Government approval was received in late November
2001, seven months ahead of schedule. Construction activities are underway on
critical path items.

The capital forecast and longwall startup schedule remains unchanged at US$151
million and May 2005 respectively.

Energy Coal

San Juan Underground, New Mexico, USA

The project involves the development of an underground longwall mine at the San
Juan energy coal operations in New Mexico, USA. The mine will replace production
from two of BHP Billiton's three existing surface mines. The project reached 88
per cent completion by the end of December 2001. The longwall compatibility test
has been completed and the majority of the longwall equipment has been received
ahead of schedule. Surface facilities are on schedule for completion in March
2002. The shaft excavation, including the bottom station, has been completed.
The concrete lining for the shaft bottom station will be complete by early
February 2002. Longwall startup is forecast for August 2002 with full production
expected by the end of 2002. Project spending is on budget at US$146 million,
with US$127 million committed at the end of December.

Mount Arthur North, New South Wales, Australia

The Mount Arthur North mine will be capable of producing up to 15 million tones
of raw thermal coal per annum when full production is achieved in 2006.
Commitments during the quarter ending December 2001 were US$54 million, with
total commitments at December 2001 of US$153 million. Capital expenditure for
the quarter was US$14 million. The Project is on schedule and has completed its
sixth month of an anticipated 32-month construction period. Project costs remain
unchanged at US$411 million.

In the December 2001 quarter detailed design and engineering reached 45 per cent
completion. All long lead-time items have been ordered and critical path
activities are in place or being finalised. Major contract construction work,
i.e. earthworks, mine pre-development and infrastructure, is progressing.

Stainless Steel Materials

Gag Island, Indonesia (BHP Billiton 75% interest)

Following extensive deliberation and in the absence of resolution of a forestry
issue, Falconbridge has decided not to pursue further involvement in the Gag
Island Nickel Project.

Falconbridge had signed a joint venture agreement with BHP Billiton in June 2000
conditional on the satisfaction of a number of matters including the resolution
of the forestry issue with the Indonesian Government.

The Gag Island Nickel Project has been held in 'care and maintenance' status
since early 2000 following introduction by Indonesia in 1999 of a law
prohibiting open pit mining in areas designated as 'Protection Forest' and the
subsequent reclassification of extensive areas of Indonesia, including Gag
Island, as Protection Forest.

With the continued absence of a resolution to the forestry issue PT Gag Nickel,
the joint venture vehicle between BHP Billiton and Aneka Tambang, is seeking a
suspension of the Gag Contract of Work and will review its options going
forward.

PETROLEUM DEVELOPMENT

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

During the quarter approval was announced for the construction of the Bream gas
pipeline in Bass Strait. The new pipeline will allow the production of gas
reserves from the Bream reservoir and will also access and accelerate the
production of around 30 million barrels of hydrocarbon liquids (BHP Billiton
share 15 million barrels) over a 10-year period. The 46-kilometre pipeline will
run from the Bream A platform in Bass Strait, cross the Gippsland coast near
Paradise Beach and continue a further five kilometres underground to an existing
pipeline upstream of the joint venture's gas and crude oil processing plant at
Longford. Construction of the onshore section of the pipeline commenced in
December 2001. The gross cost will be around A$200 million (BHP Billiton share
A$100 million). First gas/liquids are expected to flow mid 2003.

Echo Yodel, Australia (BHP Billiton 16.7%, non operated)

First gas and condensate from the Echo Yodel subsea tie-back project to the
Goodwyn Alpha platform flowed on 24 December at a production flowrate of 350
million standard cubic feet per day (MMcf/d). The project was completed three
months ahead of target schedule and within budget.

Laminaria Phase II development, Australia (BHP Billiton 32.6%, non operated)

The project entails two new infill subsea wells tied-back to the Northern
Endeavour. All equipment has arrived in Darwin and further integrated testing is
planned. The spudding of the first well is planned for mid January. The
increased production is scheduled to commence in mid 2002.

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

The construction of the fourth liquefaction processing train is progressing on
schedule with foundation work 24 per cent complete. The first stage of the
workforce accommodation has also been completed. It is expected that the
contracts for onsite mechanical erection and offsite civil works will be awarded
in January 2002. The second trunkline project is now in its execution phase
following the completion of front end engineering design. The procurement
contract for linepipe has been let and it is expected that the contract for
pipelay will be awarded in January 2002. First production is scheduled for mid
2004.

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 under a risk service contract
(RSC) with SONATRACH, the national hydrocarbons company. The project will
provide a 20 million cubic metres per day gas treatment facility fed by 47
production wells, 32 of which will be new.

By the end of December 2001 a total of eight new wells had been drilled and
completed and one existing well had been re-completed. Facilities engineering is
90 per cent complete and significant volumes of bulk materials have been
delivered to site.

The first equipment items have been installed on site. Pipelaying and welding
for each of the two major in-field gathering pipelines is well underway and work
has commenced on the export pipelines. All major construction sub-contracts have
been awarded and all sub-contractors are now active at site. First production
remains scheduled for the third calendar quarter 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, to be executed under a
production sharing contract (PSC) with SONATRACH. 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. 36 development wells will be required, 10 of which will be
recompletions of wells already drilled.

Drilling of the first development well commenced in November 2001 following
upgrading of the drilling rig, at end-December 2001 the rig was working on the
second development well. Contracts for the long lead engineering items have been
awarded. The technical evaluation of potential contractors for the EPC (Engineer
/Procure/Construct) contract for the production facilities was completed in the
fourth calendar quarter of 2001 and commercial bids will be received in late
January 2002. First production is scheduled for 2003.

MINERALS EXPLORATION

The Exploration Group of BHP Billiton Minerals continued to carry out global
grass-roots exploration for key commodities of interest to the Group.

The Junior Alliance Program (third party alliances and joint ventures) has
delivered significant encouragement this quarter with exploration success
through Minotaur Resources Ltd, in South Australia, and Ivanhoe Mines Ltd, in
Mongolia. This program emphasises the use of distinctive capabilities and
innovative commercial investments to gain the widest possible exposure to the
results of third party-funded exploration.

The two FALCON(TM) systems are continuing to fly extensive campaigns in Africa and
the Americas and an alliance deal has been signed with Grenfell N.L. to maximise
the exposure of FALCON(TM) to projects in Australia.







PETROLEUM EXPLORATION

Exploration and appraisal wells drilled during the quarter or in the process of
drilling as at 31 December 2001.

WELL                         LOCATION                     BHP Billiton EQUITY          STATUS
97/24 A-1                    UK Block 74/24               50% BHP Billiton Operator    P&A
Atlantis-3 ST/1              Green Canyon Block 743, Gulf 44% Operator - BP            P&A. Oil encountered
                             of Mexico
Boris-1                      Green Canyon Block 282, Gulf 50% BHP Billiton Operator    P&A. Oil and gas discovery
                             of Mexico
Boris-S/T£1                  Green Canyon Block 282, Gulf 50% BHP Billiton Operator    P&A. Oil and gas discovery
                             of Mexico
Boris-S/T£2                  Green Canyon Block 282, Gulf 50% BHP Billiton Operator    P&A. Oil and gas discovery
                             of Mexico
Boris-S/T£3                  Green Canyon Block 282, Gulf 50% BHP Billiton Operator    Temporarily abandoned. Oil and
                             of Mexico                                                 gas discovery
Mad Dog-4                    Green Canyon Block 782, Gulf 23.9% Operator - BP          P&A. Oil encountered
                             of Mexico
Paris Carver                 Green Canyon Block 601, Gulf 50% BHP Billiton.            P&A. No hydrocarbons found
                             of Mexico
                                                          Marathon operated initial
                                                          well
Gnome-1                      Atwater Valley Block 18,     50% BHP Billiton Operator    P&A
                             Gulf of Mexico
Canteen-1                    Trinidad Block 2(c)          45% BHP Billiton Operator    Temporarily abandoned. Oil and
                                                                                       gas discovery, tested 3,660
                                                                                       barrels (bbl) oil/day.
Crapaud-1                    Trinidad Block 2(ab)         50% BHP Billiton Operator    At end of quarter had reached
                                                                                       3,700 feet.
Kairi-2                      Trinidad Block 2(c)          45% BHP Billiton Operator    At the end of the period drilling
                                                                                       had intersected the reservoir
                                                                                       section.
Ika Marin-1                  Tolo Block, Gabon            40.12% BHP Billiton Operator P&A. Dry
Iona-1                       Block 21, Angola             30%, BHP Billiton Operator   Drilled during September quarter.
                                                                                       P&A. Dry
Phrixus-1                    AC/P30, Browse Basin,        70% BHP Billiton Operator    P&A
                             Australia

EXPLORATION EXPENDITURE

Information related to exploration expenditure will be included in the half year
BHP Billiton Profit Report, to be released on 14 February 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 Recognised 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.

                                      ****

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