Steel Strategy

BROKEN HILL PROPRIETARY COMPANY LIMITED
6 October 1999

        
                      BHP ANNOUNCES STEEL STRATEGY

The Broken Hill Proprietary Company Limited (BHP) today announced a major step
in advancing its strategy to focus BHP as a world class natural resources
company, with a steel component.

Following a review of its steel portfolio, BHP Steel will become a simpler
business, focused on those areas in which BHP has ongoing operational and
marketing advantages, which are consistent with its strategic objectives, and
which generate sustainable shareholder value.

It is expected that, following changes to its portfolio, BHP Steel will deliver
its cost of capital on a sustainable basis through the business cycle within
three years.

The new BHP Steel portfolio will concentrate on flat products in Australia, New
Zealand and Asia, based on the low cost supply of steel from Port Kembla
Steelworks and its leading position in coated steel. It will serve primarily
building and construction markets using the successful marketing brands of
ZINCALUME(R) steel and COLORBOND(R) steel.

Announcing these initiatives today, President BHP Steel Bob Every said: 'These
changes give effect to the strategic objective of building on the Company's
strong position in minerals while taking advantage of niche opportunities in
steel. They are an essential part of BHP's evolution if it is to remain a global
player.'

BHP intends to divest those parts of its steel business that do not fit its long
term strategy. The Company expects to realise appropriate value for what it
believes will be attractive businesses to other owners with different strategic
objectives.

This divestment program is expected to generate significant cash proceeds for
BHP.

'In the current operations, diversity of the product line and the range of
geographical locations created a very complex organisation that lacked focus and
strategic rationale' Dr Every said.

'At the same time, industry consolidation and increased competition in the
global steel markets necessitate slimmer, more tightly focused businesses in
order to survive.

'These changes will increase the potential for BHP Steel to compete, while
increasing the potential for those businesses that will no longer be part of the
portfolio to survive and prosper in the new global steel market.

'I understand that these announcements may cause some anxiety for our employees,
customers and communities. BHP will work with people affected to make sure they
are informed about the reasons the Company is seeking to divest these businesses
and the process that will follow.

'These changes are not about closing businesses. They aim to focus BHP on
operations that are consistent with our portfolio objectives and to allow other
companies, with different objectives, to bid for those businesses that no longer
fit the BHP portfolio.'

The new steel portfolio will include Port Kembla Steelworks; Coated Steel
Australia (Spring Hill, Western Port, Service Centres); Coated Steel Asia
(Thailand, Malaysia, Indonesia); BHP New Zealand Steel; BHP Building Products
Australia; BHP Steel Building Products Asia.

Businesses BHP is seeking to divest include Long Products, Tubemakers
Merchandising, Structural and Pipeline Products, Tin Mill Products, Steel
Building Products Pacific, Coated Steel Corporation USA, Steel Building Products
USA and, in consultation with our joint venture partner, North Star BHP Steel.

For information contact:

Media Relations:              Mandy Frostick
                              Manager Media Relations - Melb
                              Tel: [phone]     (bh)
                                   [phone]     (mobile)

                              Andrew Marjoribanks
                              Manager Business Relations, BHP Steel Melb
                              Tel: [phone]     (bh)
                                   [phone]     (mobile)

Investor Relations:           Dr Robert Porter
                              Vice President Investor Relations (elect) Melb
                              Tel: [phone]     (bh)
                                   [phone]     (mobile)