Settlement of Contracts

Broken Hill Proprietary Co Ld
7 February 2000

JAPANESE COKING COAL CONTRACTS SETTLED

The Broken Hill Proprietary Company Limited (BHP) has settled commercial terms
for the annual premium hard coking coal contracts with a number of its major
customers in Japan.  

Prices for the premium coals marketed by BHP to Japanese steelmakers will be
reduced by an average of around five percent.  The settlement affects about
five million tonnes or 15 per cent of BHP's annual coal sales and is effective
from 1 April 2000.

President BHP Minerals Ron McNeilly said the decline in the prices of the
tonnes negotiated with the Japanese Steel Mills reflected price discounting by
some coal suppliers in non-Japanese markets, as well as increased capacity
from new mines.

Mr McNeilly said: 'While the prices achieved reflect the world supply and
demand situation for internationally-traded premium hard coking coal, I am
pleased this outcome will see BHP's market position strengthen in Japan over
the next 12 months.' 

Negotiations for the full range of BHP coals in Japan and elsewhere are still
to be completed and Mr McNeilly said that in the current difficult market
conditions the Company will be seeking an enhanced price/volume mix outcome
across its total export sales for the next year.

Japan accounts for around 30 per cent of annual sales of coking coal from the
mines managed by BHP Coal. Other major markets are Europe, Korea, India,
Taiwan and South America. 

The agreement involves seven coal mines in Central Queensland, managed by BHP
Coal on behalf of the CQCA and Gregory Joint Ventures and BHP Mitsui Coal Pty
Ltd.



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

                 Ian Dymock, Manager Public Affairs - Brisbane
                 BHP Coal Pty Ltd
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INVESTOR RELATIONS:   Andrew Nairn
                      Investor Relations - Melbourne
                      Tel:        [phone]