ReWesternAustralian HBI Plant

Broken Hill Proprietary Co Ld
4 May 2000



                       BHP WRITE-OFF OF HBI PLANT

The Broken Hill Proprietary Company Ltd (BHP) today announced a writeoff
of the carrying value of its Western Australian HBI plant following
continued commissioning difficulties.  The writeoff is for $1138 million
before tax ($794 million after tax).

The writeoff follows a review of the carrying value of the asset in
accordance with Australian Accounting Standards and BHP policy.
Carrying values are reviewed to ensure they do not exceed the asset's
recoverable amount'. The key factors influencing the West Australian HBI
recoverable amount include lower production and sales volumes, lower
sales prices, increased average cost of production and higher capital
expenditure to support modifications.

BHP is continuing to pursue a solution in order to improve production
reliability from the HBI plant.  The Company has developed a detailed
project plan for the implementation of a number of technical
modifications to existing facilities at a cost of $46 million.

The capital outlay associated with this work, along with future operating
cost, will be expensed. The outcome of trials, to determine technical
viability of the plant, will be reviewed  upon completion.  If the trials
are successful additional capital expenditure will be required to
determine economic viability.

BHP is committed to thoroughly reviewing the technical options available
to accurately determine the future economic viability of the HBI
facility.

The Company expects a final decision on the continued retention of the
asset within the portfolio to be made by the end of the calendar year.
If a decision is taken to cease operations and to shut down the plant, it
will be necessary to recognise 'take-or-pay' contracts and other
liabilities amounting to approximately $1.1 billion before tax in present
value terms before mitigation of exposures.

The total cost of the HBI Western Australia plant was $2.6 billion and
the project has been written down twice as a result of the carrying value
review process.  The book value was written down by $590 million before
tax ($378 million after tax) in the year ended May 1998 and was written
down by a further $829 million before tax ($531 million after tax) in the
year ended May 1999.

BHP's investment in the HBI Venezuela facility has also been reviewed and
this project passes the carrying value test. The Venezuela project is now
more than 90 per cent complete with the first briquettes expected in June
this year.

Contact:
MEDIA RELATIONS:    Mandy Frostick
                    Manager Media Relations
                    Ph:  [phone]
                    Mob: [phone]

INVESTOR RELATIONS: Rob Porter
                    Vice President Investor Relations
                    Ph:  61 3 9609 3540
                    Mob: [phone]