QCT Letter to Shareholders

Broken Hill Proprietary Co Ld
30 October 2000



27 October, 2000

Dear QCT Shareholder

The Broken Hill Proprietary Company Limited ('BHP') and Mitsubishi Development
Pty. Ltd. ('Mitsubishi') are pleased to inform you that their revised offer
for your shares in QCT Resources Limited ('QCT') is no longer subject to any 
conditions. The offer is made by their jointly owned bidding vehicle MetCoal 
Holdings (Qld) Pty Ltd ('MetCoal').

On 16 October, 2000, MetCoal announced it would increase the offer price. All 
shareholders of QCT who accept the offer will receive $1.20 from MetCoal. In 
addition, all shareholders of QCT who acquired their shares in QCT prior to 
when the shares commenced trading ex-dividend on 18 October, 2000 will receive
a fully franked 10c special dividend from QCT, as announced by QCT on 13 
October, 2000. 

The payment terms have now been shortened to five business days for all 
accepting shareholders.

MetCoal is now entitled to more than 80.2% of the shares in QCT.
Four representatives of BHP and Mitsubishi have now been appointed to the QCT 
Board. At the conclusion of the QCT Board meeting scheduled for 1 November, 
2000, it is expected that MetCoal will have majority representation on the 
QCT Board.

In addition, you may already be aware that the directors of QCT have 
unanimously recommended that you accept the MetCoal offer. 
In making their recommendation, your QCT directors made the following points: 

. QCT's directors will be accepting the offer with respect to their own
  shares;

. Despite an extensive international search and discussions with a number of 
  parties, no alternative proposal for QCT shareholders has emerged; and 

. If MetCoal achieves acceptances for greater than 50.1% (which has now been 
  achieved), the resultant reduction in market liquidity and ASX index 
  weighting may place downward pressure on the QCT share price following 
  closure of the offer. If you do not accept the offer you may be locked in to

  a minority holding in an investment with limited liquidity. The degree to 
  which liquidity will be affected is dependent on the final level of 
  acceptances received by MetCoal.

From the close of trading on 31 October, 2000, QCT is to be removed from the 
S&P/ASX 200, S&P/ASX 300 and Share Price Index.

You should also be aware that MetCoal has commenced and intends to continue 
purchasing ordinary shares in QCT on-market during the remainder of the offer 
period.  MetCoal is permitted to do this under the Corporations Law as a 
consequence of MetCoal freeing the bid from defeating conditions on Monday 23 
October, 2000.

The MetCoal offer is scheduled to close at 7.00pm (Melbourne time) on 3 
November, 2000.  

If you have any queries in relation to the offer, please call 1800 242 300. 
If you have questions as to how to accept the offer, or have misplaced your 
acceptance form, please call Computer Share Registry Services on 
1800 102 850.

We urge you to accept the offer without delay.

Yours sincerely




Paul Anderson
Managing Director and CEO
The Broken Hill Proprietary Company Limited     

Kenjiro Itadani
Managing Director
Mitsubishi Development Pty. Ltd.