BHP Manganese Sale.

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 17, 1998--The Broken Hill Proprietary Company Limited ("BHP") today signed and completed an agreement with Billiton Plc for the sale of the shares of Groote Eylandt Mining Company Pty Ltd ("GEMCO") and Tasmanian Electro Metallurgical Company Pty Ltd ("TEMCO").

The sale includes certain associated assets and loans.

The sale price is A$601 million and is subject to a final positive adjustment. This is expected to be approximately A$52 million following audit of the completion balance sheet. The estimated book value of the net assets sold at completion is approximately A$285 million.

The transaction announced today is for BHP's principal manganese assets, but BHP also intends to divest its remaining manganese interests. These further transactions are expected to generate cash of approximately A$17 million.

Billiton is one of the world's major resource groups. It is based in London and has significant interests in aluminium, base metals, coal, nickel and titanium minerals as well as steel and ferro alloys.

Billiton has a majority interest in Samancor Limited in South Africa, which is a leading producer of chrome and manganese products.

"This sale further demonstrates BHP's commitment to deliver shareholder value through active management of its asset portfolio and this is an excellent outcome," Managing Director and Chief Executive Officer, P.M. (Paul) Anderson, said.

"Whilst the manganese business has been a consistent contributor to BHP profits and cash flow for more than 30 years, its relatively small size means it is no longer considered a strategic or core asset for BHP.

"This assessment was made as part of the ongoing and systematic review of our asset portfolio. The sale price delivers greater value to BHP shareholders than continuing to operate the business."

The Chief Executive of Samancor, Wilrich Schroeder said, "Manganese is a core business for Samancor and the assets acquired from BHP provide an excellent opportunity for growth and overall improvement by benchmarking best practices.

"At GEMCO and TEMCO Samancor will continue to build strong relationships with the employees as well as the communities on Groote Eylandt in the Northern Territory and the Tamar Valley in Tasmania."

BHP has operated a world class manganese mine at Groote Eylandt, off the coast of the Northern Territory, since 1966 and a ferro alloy smelter at Bell Bay, Tasmania, since 1962. Further details are included below. -0-

   Background Information BHP Manganese

Operations (BHP 100 per cent)

--   Manganese smelter at Bell Bay, Tasmania, operated by the
     Tasmanian Electro Metallurgical Company Pty Ltd (TEMCO).
--   Manganese mine on Groote Eylandt, off the coast of the Northern
     Territory, operated by the Groote Eylandt Mining Company Pty Ltd
     (GEMCO).

Production information -- year ended 31 May 1998

--   TEMCO produced 100 002 tonnes of high carbon ferro- manganese
     alloy, 94 343 tonnes of silico-manganese alloy and 268 361 tonnes
     of sinter.
--   GEMCO produced approximately 1.7 million tonnes of high grade
     manganese ore.

Financial information -- year ended 31 May 1998

--   Consolidated sales revenue of A$363 million on net assets of
     A$393 million.

History

--   1962 Groote Elyandt surveyed by BHP geologists. TEMCO began
     operations in Tasmania to provide ferro alloys to the steel
     industry. Initial production 20 000 tonnes per annum.
--   1964 Construction began on the port, townshipand mining operation
     at Groote Eylandt.
--   1966 First shipment of manganese ore sent from GEMCO to TEMCO for
     smelting. Shipping for the year May 1966 of the ore was 21,643
     tonnes all of which was domestic.
--   1972 GEMCO beneficiation plant commissioned.
--   1973 GEMCO annual shipping exceeded one million tonnes.
--   1976 TEMCO sinter plant commissioned.
--   1974-1977 TEMCO expansion.
--   1985-1988 Further expansion of TEMCO to increase production by 40
     per cent.
--   1998 TEMCO's current rate of production: 123 000 tonnes of high
     carbon ferro manganese; 110 000 tonnes of silico manganese and
     335 000 tonnes of sinter.