Disposal Completed

BROKEN HILL PROPRIETARY CO LTD
20 August 1999




                            
The Broken Hill Proprietary Company Limited (BHP) has confirmed the sale of
Moura coal mine to the Moura Joint Venture, effective from today.  The mine
was previously owned by BHP Mitsui Coal Pty. Ltd. (BHP - 80 per cent, 
Mitsui - 20 per cent). Proceeds from the sale are $89 million.

The new participants and their interests in the Moura Joint Venture are:

-    Peabody Resources Limited (55 per cent), which is part of the Peabody
     Group of USA,the world's largest private sector coal company, and

-    Mitsui Coal Holdings Pty Limited (45 per cent), whose parent is Mitsui
     and Co. Limited, one of the leading Japanese trading houses.

Peabody Resources Limited will manage the mine on behalf of the Joint Venture
owners.

Moura is a surface mining operation that utilises dragline and highwall mining
methods to produce 4 million tonnes a year of steaming and semi-soft coking
coal, most of which is exported to Japan and Korea. The sale includes the coal
and seam gas assets of the mine.

Moura Mine is located 180 km west of the port of Gladstone in Queensland.

A key feature of the sale is the commitment by the new owners to retain the
existing Moura workforce, which will minimise any disruption to employee
arrangements during the handover phase.

                            
                             
For information contact: Ian Dymock
                         Manager, Public Affairs, BHP Coal Brisbane
                         Tel:    [phone] (bh)
                         Mobile: [phone]