BHP I/O Price Settlement

BHP Limited
26 March 2001


Release Time     IMMEDIATE

Date          26 March 2001

Number     27/01

                        BHP IRON ORE PRICE SETTLEMENT


BHP Limited (BHP) today announced that it had reached agreement with Nippon
Steel on iron ore prices for the year commencing 1 April, 2001 - the first
settlement by an Australian producer. Negotiations are continuing with other
leading Japanese steelmills.


The prices of Mt Newman fine ore will increase by 4.3% to US cents 28.98 per
dry long ton unit. The price premium for lump ore will be maintained at 9.05
US cents per dry long ton unit .


A 4.3% increase was also agreed for Mt Goldsworthy fines and Yandi fines
products.


Discussions are continuing on tonnage allocations, but BHP Iron Ore expects
its good relationship with the Japanese steel mills will continue to ensure it
maintains its position as Australia's leading exporter to Japan.


President BHP Iron Ore Stefano Giorgini said: 'The outcome reflects the
uncertain economic outlook and how it may affect world steel production,
particularly Japanese steel production. It however also recognises the
continuing strong underlying demand for seaborne iron ore.


'The settlement underlines the long standing good relationship BHP Iron Ore
has with its Japanese customers,' Mr Giorgini said. 'The iron ore and steel
industries are inter-dependent and this agreement is a beneficial outcome for
both BHP Iron Ore and the Japanese steelmills.'


BHP Iron Ore is well placed to meet any future demand for iron ore - both in
quantity and quality. The development of the rich Mining Area C resource later
this year will further add to the range and quality of products available from
its Pilbara operations.

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


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