Year 2000 Information Update
Broken Hill Proprietary Company Limited
16 December 1999
RELEASE TO THE AUSTRALIAN STOCK EXCHANGE AND THE UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
YEAR 2000
Year 2000 Information and Readiness Disclosure Act 1998
(United States of America)
This disclosure is made under the Year 2000 Information
and Readiness Disclosure Act 1998
This communication contains certain forward-looking statements. Such
forward-looking statements are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors, many of
which are beyond BHP's control, which may cause actual results to differ
materially from those expressed or implied in the statements contained
therein. While BHP is undertaking a process intended to achieve Year 2000
readiness of its systems, there can be no assurance that this process will be
successful in whole or in part or that the date change from 1999 to 2000 will
not materially affect BHP's operations and financial results. This is
particularly true in light of BHP's dependence on third parties, such as its
suppliers and customers, whose Year 2000 readiness efforts are outside BHP's
control.
BHP provides the following further information about its potential exposure to
Year 2000 problems with computer systems, and about progress of risk
mitigation. This information updates the BHP releases to the Australian Stock
Exchange and the United States of America Securities and Exchange Commission
of 29 March 1999 and 21 September 1999.
BHP conducts a diverse range of business activities in a large number of
countries.
The Company uses computer systems across its businesses. These computer
systems include industrial production and control systems, business systems,
office systems, network and communications equipment and devices which contain
a computer chip ('embedded systems') such as building environment controls and
elevators. Personnel from one of BHP's businesses, BHP Information
Technology, service external customers as well as provide a significant
proportion of BHP's information technology delivery services. BHP has
numerous relationships and interfaces with public infrastructure, suppliers,
customers and business partners (ranging from individuals and small businesses
to international conglomerates) in a wide variety of environments across the
world.
BHP has been addressing the Year 2000 issue since 1996. Responsibility and
accountability for managing it, like other business issues, is delegated to
the Presidents of the principal businesses of BHP. A number of Year 2000
projects of differing size and complexity are being carried out within BHP's
businesses and the corporate centre. In addition a number of projects are
being managed by joint venture partners.
Since BHP's release to the Australian Stock Exchange and the United States of
America Securities and Exchange Commission on 21 September 1999, there have
been no material changes to our assessment of BHP's potential exposure to the
Year 2000 problem, including external supply chain and infrastructure risks.
Progress by BHP on its own Year 2000 remediation has reached practical
completion. Transition and contingency plans have been prepared, approved and
deployed.
BHP's Year 2000 Project will continue through to March 2000, covering the Leap
Year issue, at which time we will reach 100% completion. As at the end of
November 1999, taken overall and allowing for transition/contingency planning,
we have achieved 98.1% completion.
Our Year 2000 project budget was previously set at $85 (US$55) million and is
currently forecast to be $85.7 million.
Note: Previous Year 2000 releases can be viewed on BHP's web site,
http://www.bhp.com.au/y2k.htm
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