Stmnt re 3rd Quarter Results

BHP Limited
3 May 2001


Release Time     IMMEDIATE

Date          3 May 2001

Number     41/01


                  BHP ANNOUNCES THIRD QUARTER PROFIT RESULT

BHP Limited today announced a third quarter profit result of A$27 million
(after tax), an improvement of A$73 million compared to a A$46 million (after
tax) loss for the corresponding period ended 31 March 2000. The BHP Board also
announced a fully franked dividend of 26 cents per share to be paid on 2 July
2001.

BHP Managing Director and CEO Paul Anderson said: 'Excluding the A$811 million
charge related to HBI Venezuela, the quarter profit was a very solid A$838
million. The result was driven by the benefit of lower A$/US$ exchange rates
and strong financial performance from our minerals and petroleum businesses.

'These results, combined with the announcement of our merger with Billiton and
the approval of several important growth projects, set the stage for continued
evolution of BHP. During recent weeks we have undertaken a worldwide roadshow
to present the merger to shareholders and investors, and BHP's positive share
price performance since the announcement is gratifying.'

Mr Anderson also made the following comments regarding the profit result and
recent major events:

  * 'The decision to write-off our investment in HBI Venezuela and cease any
    further investment in that asset demonstrates our continued resolve to
    address problem assets and take the appropriate, often hard decisions, to
    ensure the protection of shareholder value. Significant commissioning
    difficulties, coupled with possible partner funding issues and a
    significant deterioration in the price received for the product due to the
    collapse of the US steel market and associated HBI market, all influenced
    our decision.

  * 'The acquisition of QCT Resources and subsequent announcement to
    equalise interests with Mitsubishi Development allowed us to rationalise
    production and capture synergies that were otherwise not available. The
    consolidation of ownership delivers an outstanding result to shareholders
    and the new structure leaves two strong partners with fully aligned
    interests running the world's premium metallurgical coal business.

  * 'Subsequent to the end of the quarter, we also announced the proposed
    acquisition of an additional 29 per cent equity in the Ekati diamond mine
    through a cash offer of C$687 million (approx A$897 million) for Dia Met
    Minerals Ltd. The offer is currently expected to remain open for
    acceptance until May 18 and is conditional on BHP acquiring at least 75
    per cent of both classes of Dia Met shares on a fully diluted basis. Upon
    completion, the acquisition will enable BHP's current marketing and
    branding initiatives for Ekati diamonds to be pursued on a larger scale
    and will also consolidate ownership of this asset.

  * 'Consistent with our goal of bringing forward growth opportunities, we
    have announced approval of a range of capital projects totalling
    A$785million. These included expansion of the CQCA Blackwater coal mine,
    the Tintaya Oxide development in Peru and approval of the fourth LNG train
    at the North West Shelf Project in Western Australia.

  * 'The quarter also saw the commencement of contractual gas sales from the
    extended well test on the Zamzama gas field in Southern Pakistan. The
    project was completed on schedule and on budget and current sales are
    approximately 70mmcf/d (gross).


    'In addition, BHP executed a Letter of Intent with Pohang Iron and Steel
    Co. Ltd (POSCO) to enter into a joint venture for development of an iron
    ore mine within Mining Area C in the central Pilbara, Western Australia.

  * 'Despite depressed international market conditions, BHP Steel generated
    a solid profit. The decline in the comparative result is primarily
    attributable to industrial action and planned maintenance at the Port
    Kembla Steelworks hot strip mill, lower sales volumes and the contribution
    from discontinued Steel operations, including OneSteel and the US West
    Coast businesses, in the corresponding quarter last year. We expect our
    domestic steel business will come under increased pressure with the
    continued slow down in economic growth over the next quarter.

  * 'The fourth quarter heralds one of the most significant events in BHP's
    history as we proceed to the Extraordinary General Meeting of shareholders
    on 18 May 2001 for the vote on our proposed merger with Billiton Plc. BHP
    Billiton will be the premier diversified resources stock - an industry
    leader with low costs, strong cash flow and outstanding growth
    opportunities. Planning for integration activities is progressing well.
    This is undoubtedly an exciting time to be a BHP shareholder.

  * 'Industry dynamics remain favourable for the fourth quarter with
    continued solid demand for our petroleum products and key minerals
    commodity markets of iron ore and coal. In late March, we announced a 4.3
    per cent increase in iron ore prices negotiated with Nippon Steel.


    'Individual negotiations are continuing with our major coal customers and
    settlements to date for Hard Coking Coal contracts are broadly in line
    with price settlements reported by other producers for this market.'

                                    * * *

Further information can be found on our internet site: http://www.bhp.com


Contact:
MEDIA RELATIONS
Mandy Frostick, Manager Media Relations
Ph: 61 3 9609 4157 Mob: [phone]

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