Quarterly Exploration Report

BROKEN HILL PROPRIETARY COMPANY LIMITED
21 September 1999
    
    
             QUARTERLY REPORT ON EXPLORATION AND DEVELOPMENT
                         June 1999 - August 1999
                                    
This report covers exploration and development activities for the quarter ended
August 31, 1999.

Unless otherwise stated, BHP's interest in the projects referred to in this
report is 100%.

DEVELOPMENT PROJECTS

The following projects are in various stages of construction and/or development:

MINERALS

Escondida, Chile (BHP 57.5% interest)

A study of various options for the Phase 4 Expansion project is on going.

HBI Plant, Iron Ore, Western Australia

The final project cost has been assessed at approximately $2.3 billion.

All four process trains have been commissioned and have operated for short
campaigns with promising product attributes. Process and equipment modifications
are continuing to improve plant reliability. Five shipments of briquettes have
been despatched. This project is reported in BHP's Quarterly Production Report
and therefore will no longer be included in the Quarterly Report on Exploration
and Development.

A total of 17.5 million man-hours have been worked on the project for a Lost
Time Injury Frequency Rate of 0.69.

HBI Joint Venture, Iron Ore, Venezuela (BHP 50% interest)

The project is 86% complete.

Construction work is proceeding on all fronts with the main focus of attention
now on completion of the ore feed section, process piping, electrics and
instrumentation to enable testing and cold commissioning to commence.
Disappointing pipework installation rates are negatively impacting the schedule.
Gas and power connections to the site have been completed.

The project is expected to produce the first briquettes by the end of the first
quarter in early 2000.The project lost time frequency rate stands at 0.99 after
8.1 million hours worked.

Orebody 18, Iron Ore, Western Australia (BHP 85% interest)

The Orebody 18 mine development still remains suspended as a result of market
conditions and will only be reported on in the future when development
recommences.

PETROLEUM

Bass Strait, Australia (BHP 50% interest, non operated)

During the quarter, development drilling activity continued, associated with the
Esso Australia operated Blackback field. The field development comprises three
planned subsea production wells, tied back to the existing Mackerel platform.
Three production wells have been drilled and successfully flowed. Well capacity
from the three wells is in excess of the 18,000 barrel per day pipeline
capacity, but total field production is currently constrained by handling at
Mackerel of a higher than anticipated gas production rate from the field. Well
testing is planned to investigate the production characteristics of individual
wells and options for optimising production are in progress. This project is
reported in BHP's Quarterly Production Report and therefore will no longer be
included in the Quarterly Report on Exploration and Development.

Buffalo Australia (BHP 50% interest, operated)

During the quarter, the wellhead platform was installed at site. Three
development wells were drilled and two completed and tested. The information is
being used to finalise the reservoir characteristics. The shipyard conversion of
the Buffalo Venture to an FPSO and the fabrication of the process modules,
mooring system, flowlines and umbilical are well advanced. First oil is
scheduled for late December 1999, with peak production of 40,000 barrels per day
(gross) expected once the facility has been fully commissioned.

Laminaria (BHP 32.6% interest)/Corallina (BHP 25% interest) Australia, non
operated.

The Laminaria FPSO, Northern Endeavour, is in the final stages of commissioning
in Singapore. The project remains on schedule for first oil during fourth
quarter 1999. Initial production of 140,000 barrels per day (gross) is expected.

EXPLORATION

The Discovery Division of BHP Minerals Development carries out worldwide
grass-roots exploration for all BHP's minerals businesses. During the quarter
the outcomes of the previous review were implemented. The global exploration
portfolio continues to be evaluated as part of our on-going minerals strategic
review.

BHP Minerals Development is also responsible for exploration and development
work related to existing mines.

Copper Projects

Agua Rica, Argentina (BHP 70% interest)

Evaluation of metallurgical test work and engineering studies were completed and
reports issued. This work confirmed that acceptable metal recoveries and
favourable grinding characteristics could be achieved. Other evaluation work is
continuing at a low level. Activity at the field site was limited to
environmental monitoring and claim work.

Escondida Norte, Chile (BHP 57.5% interest)

The 12,000m reverse circulation surface infill drilling program and 3,000m
underground, horizontal diamond drilling program were completed during the
quarter. A total of 49 drill holes were addded to the deposit drilling database.
The surface drilling was performed to upgrade areas of Inferred Resource, on the
western margin of the deposit, to Indicated Resource status. The underground
diamond drilling program from within the decline generated valuable data on the
horizontal continuity of the mineralisation. Geological and geotechnical
logging, drill hole sampling and assaying are expected to be completed during
the next quarter.

The bulk sample decline was completed in June with a total of 1,871m of combined
decline and tunnel development. Geological and geotechnical evaluations of the
tunnel have been completed. Crushing and sample preparation activities on the
extracted sulfide and oxide mineralisation have also been completed and bulk
samples prepared for metallurgical test work.

Results from pilot plant scale flotation tests on bulk samples of sulfide ore
have confirmed, as predicted in bench scale tests, that the ore is amenable to
concentration.

Bio-heap leaching tests in cribs at the on-site pilot leaching plant facility
continued through the quarter. These are designed to evaluate sulfide ore
derived from the bulk sample tunnel. A range of geological, metallurgical and
engineering parameters are being tested.


North American Copper Projects, USA.

There were no significant activities on the previously reported projects at
Florence, San Manuel and Superior.

Tintaya, Peru

During the quarter, exploration work continued on the leases associated with the
Tintaya mine. Drilling was mainly concentrated on the previously reported
discovery at the Antapaccay prospect that is approximately 10 kilometres from
Tintaya. Two zones of potentially economic porphyry and skarn style copper
mineralisation have been partially delineated. To date 130 holes totalling
45,000m have been drilled. The results have generally been encouraging and
several significant intersections are shown in the table below.

                               ANTAPACCAY
                     Significant Drill Intersections
                                    
HOLE      DEPTH    MINERALISED    LENGTH     INTERVAL 
GRADE
          metres   INTERCEPT      metres     Total Cu   Au      Ag
                                              %         ppm     ppm
ATA-135   484.30    60.40-484.30     423.90    1.01     0.21    2.34
ATA-158   503.00   122.70-495.10     372.40    1.17     0.28    2.57
ATA-089   557.20    43.35-276.10     232.75    0.90     0.08    1.56
ATA-089   557.20   309.25-557.20     247.95    1.10     0.36    2.47
ATA-053   362.50    68.70-312.85     244.15    1.24     0.22    3.54
ATA-182   568.90   311.65-550.50     238.85    1.15     0.35    2.60
ATA-133   456.50   235.95-456.50     220.55    1.39     0.34    3.30
ATA-155   355.75   172.50-355.75     183.25    1.71     0.08    4.70
ATA-127   430.00    75.00-171.75      96.75    0.94     0.20    2.22
ATA-127   430.00   219.50-380.55     161.05    1.03     0.20    3.55
ATA-184   413.95   168.00-293.85     125.85    1.82     0.20    3.15
ATA-051   430.35    75.95-159.50      83.55    1.33     0.29    2.53
ATA-051   430.35   207.00-310.30     103.30    1.25     0.37    2.60

The significance of these particular results in the context of the overall
mineralised system is still being evaluated. It is believed that the current
grid with drill holes on approximately 200m centers, has defined the broad
limits of the two mineralised bodies. A geological model is currently being
built to allow resource estimation and preliminary, conceptual mine planning to
occur during the next quarter.

The economic significance of these deposits in the context of the existing
Tintaya operation and the other previously reported resources at Coroccohuayco
and Ccatun Pucara projects is being evaluated.

Coal Projects, Queensland

Goonyella Mine (BHP 52.1% interest)

Exploratory mining of a three-heading Adit commenced on 31 August 1999. The Adit
is being driven eastwards, in the Goonyella Middle coal seam, to the Goonyella
Lease boundary. It is anticipated that the Adit will be completed by June 2000.
This will enable the completion of a feasibility study for developing a longwall
mine at Goonyella.

Saraji Mine (BHP 52.1% interest)

Further pre-feasibility study activities, for a potential longwall mine in the
Dysart seam down-dip of the existing opencuts, were undertaken. Land access
issues, principally related to Native Title, have continued to delay the start
of the exploration program.

Iron Ore Projects

Mining Area C, Iron Ore, Western Australia (BHP 85% interest)

Section 29 Notice to grant a mining lease for the Mining Area C area was issued
by the Department of Minerals and Energy in July 1999. Liaison continues with
the three currently known Native Title claimant groups.

The engineering study into railway route options is continuing.

Other Projects

Ekati Diamonds, Canada (BHP 51% interest)

The results of exploration bulk samples from the 1999 winter program are as
follows:

   Pipe     Kimberlite  Kimberlite   Diamonds        Sample Grade
            Metres      Sampled      Recovered>1mm   Cts/Tonne 
            Drilled     (tonnes)     (carats)                     

   Gazelle    1052       240.7        141.38         0.59
   Phoenix    492        106.1        149.22         1.41
   Piranha    425        87.4         203.44         2.33

Note: The Piranha pipe is located in Lac de Gras on the boundary between the
Ekati and properties controlled by the Diavik group in which BHP has no
interest. Commercial valuation of these samples will be carried out in Antwerp
in late September.

Exploration core drilling during the quarter intersected eight additional
kimberlite pipes bringing the total number of confirmed kimberlite occurrences
to 120. Five of the discoveries are within the buffer zone claims and three of
the discoveries are within the core zone claims. Microdiamond analyses are
pending.

Hope Bay Gold, Northwest Territories, Canada

BHP has signed an agreement on its Hope Bay Project in Nunavut area with Cambiex
Exploration Inc. Cambiex is encouraged by the initial results of its due
diligence study and has chosen to extend the evaluation period from 45 days to
90 days. The due diligence must now be completed by September 27, 1999. On
August 19 Cambiex paid BHP a non-refundable deposit of US$1,000,000 as provided
in the purchase agreement. This deposit will be credited against the first
instalment of the final purchase price, but will be forfeited by Cambiex if it
does not proceed after due diligence.

West Africa Gold (BHP 40-50% interest)

During the quarter BHP's joint venuture partner Resolute Ltd completed a 1180
metre diamond drilling program designed to assess geotechnical and metallurgical
parameters of the resource of the Inata prospect Belahouro license, Northern
Burkina Faso. These data are being evaluated. The field work has been suspended
due to the rainy season and will resume in October.

Chagai Copper, Pakistan (BHP 75% interest)

Nothing significant to report for the quarter.

Gag Island Nickel, Indonesia (BHP 75% interest)

The FY2000 drilling program is in progress. Environmental and social impact
studies are continuing.

Anketell Copper/Gold Project, Western Australia.

By the end of July 1999 BHP's interest in this project had diluted to 10%.
Following evaluation of the exploration data the clawback right has been
converted into options in Croesus Mining NL and Gindalbie Gold NL under the
following terms:


-   Two million options in Croesus exercisable at 50 cents
-   Three million options in Gindalbie exercisable at 42 cents
-   The options have a 5 year expiry date
-   BHP to retain the first right of refusal if the Croesus/Gindalbie JV
    either sell or joint venture the Anketell project
-   BHP to receive 6 monthly technical reports.

EXCO Alliance, Mt Isa Australia

Exco have completed over 49,000m of drilling on projects in the alliance since
commencement in mid-May. Drilling has concentrated at Strathfield, Sugarbag,
Hazel Creek, Mt Margaret and on selected regional targets.

Further additions have been made to the low grade Strathfield resource but
results from drilling on the other prospects are yet to be received. To date no
intersections of economic importance to BHP have been reported.

Petroleum

Wells drilled during the quarter or in the process of drilling as at 31 August
1999:


WELL            LOCATION        BHP EQUITY      STATUS
Natasha-1       Green Canyon    50%             Plugged and
exploration     Block           Operator -      abandoned;
well            153, Gulf of    Kerr McGee      tight hole
                Mexico                          status
                                                
GC-237-3        Green Canyon    50%             Suspended;
appraisal well  Block 237,      Operator -      tight hole
                Gulf of Mexico  Chevron         status
                                                
GC-236-4        Green Canyon    50%             Drilling ahead
appraisal well  Block 236,      Operator -
                Gulf of Mexico  Chevron
                                
Kitchener-1     Block 2ab       50%             Suspended.
exploration     Trinidad        Operator        Tight hole
well                                            status
                                                
Zamzama-1       Dadu            47.5%           Suspended
appraisal well  Concession,     Operator        after
                Pakistan                        encountering a
                                                combined gas
                                                column of 350
                                                metres and
                                                testing at
                                                rates up to 94
                                                mmscfd.
                                                
Turrum-7        VicL3,          50%             Drilling ahead
exploration     Gippsland       Operator -
well            Basin,          Esso Australia
                Australia       

NW Gobe -1X     PPl-161         12.5%           Plugged and
exploration     Papua New       Operator -      abandoned
well            Guinea          Chevron


B.  EXPENDITURE

Information related to exploration expenditure has been included  in  the
First Quarter Profit Report, released on 17 September 1999.

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 and is a full-time employee of a  member
    company of the BHP 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.


For information contact:

Media Relations:         Mandy Frostick
                         Manager Media Relations
                         Tel: [phone] (bh)
                              61 3 9687 6651 (ah)
                            0419 546 245 (mobile)

Investor Relations:      Rick Thiele
                         Manager Investor Relations & Assistant Secretary
                         Tel: [phone] (bh)