Response to Coal Action

Broken Hill Proprietary Co Ld
8 February 2000


BHP: RESPONSE TO COAL UNION'S INDUSTRIAL ACTION

The Broken Hill Proprietary Company Limited (BHP) is taking action in the
Federal Court and the Australian Industrial Relations Commission (AIRC)
against coal mining unions which called strikes overnight at the company's
Australian coal operations.

The industrial action followed yesterday's announcement that BHP had settled
commercial terms for premium hard coking coal contracts with a number of
customers in Japan.

BHP will initiate contempt proceedings in the Federal Court.

It is seeking further orders from the AIRC to prevent the Construction,
Forestry, Mining and Energy Union in the Illawarra extending their strike by a
further 24 hours.  

BHP President Minerals Ron McNeilly said today: 'The strike action is totally
unjustified.  BHP negotiated with its Japanese customers for the best outcome.
The agreement reflects the continuing oversupply situation in world coal.

'A strike in response to the outcome of price negotiations will not sell an
extra tonne of coal and only serves to send negative messages to customers
about the reliability of supply from Australia.

'The reality is that coal from Australia has been progressively replacing
production from higher cost operations in the United States and Canada, and we
expect this trend to continue'.


Contact: 
Media Relations       Ian Dymock, Manager Public Affairs
                      BHP Coal Pty Ltd - Brisbane
                      Tel: + 61 7 3226 0512

                      Mandy Frostick 
                      Manager Media Relations 
                      BHP Group - Melbourne
                      Tel: + 61 3 9609 4157