BHP US West Coast Steel Sale

Broken Hill Proprietary Co Ld
26 May 2000


BHP ANNOUNCES SALE OF US WEST COAST STEEL BUSINESSES 

The Broken Hill Proprietary Company Limited (BHP) today announced the sale of
its US West Coast steel businesses for US$234 million to IMSA Acero, a wholly
owned subsidiary of Grupo IMSA S.A..  The West Coast businesses comprise
Coated Steel Corporation USA (CSC) and Steel Building Products USA (SBP). 

The sale consideration for the West Coast businesses also includes a positive
working capital adjustment to be determined at closing of the sale and
includes an earn-out mechanism which will be based on the future performance
of the business.  As the consideration is less than the carrying value of the
assets, BHP will recognise a loss on the sale of approximately US$135 million.
 The sale is subject to regulatory approvals.

The transaction forms part of BHP's portfolio management activities to
position the Company as a natural resources company with a regional steel
focus.  As such, it is also an integral component of the BHP Steel strategic
review, announced in October 1999.  This review determined that BHP's steel
portfolio would be based around its Australian and Asian flat and coated
products business.  To this end, the Australian long products business is
planned to be spun out later this calendar year.  BHP continues to evaluate
the market situation in relation to the divestment of BHP's 50 per cent
interest in the Delta compact steel mill in Ohio. 

Coated Steel Corporation (CSC) is a producer of coated steel products with two
steel coating assets, a pickle line, cold mill, galvanizing line and an
organic coating line at the Kalama, Washington State facilities, and metallic
and organic coating lines at Rancho Cucamonga, California.  Steel Building
Products is a leading manufacturer and distributor of rollformed steel
products and accessories on the West Coast of the United States.

Grupo IMSA is a diversified industrial company, based in Monterrey, Mexico,
with interests ranging across steel, aluminium and plastics, automotive
components and batteries.


Contact:

MEDIA RELATIONS:                  INVESTOR RELATIONS:       
Mandy Frostick                    Robert Porter
Manager Media Relations           Vice President Investor Relations
Ph:   [phone]             Ph:   [phone]
Mob:  [phone]             Mob:  [phone]