BHP Billiton today confirmed the signing of the POSMAC Joint Venture between BHP Billiton Minerals Pty Ltd (65%), POS-Ore Pty Ltd (POSCO, 20%), CI Minerals Australia Pty Ltd (8%) and Mitsui Iron Ore Corporation Pty Ltd (7%) for the development and operation of the Area C iron ore mine in Western Australia’s Pilbara Region.

The POSMAC Joint Venture agreement follows the signing of the letter of intent between BHP Billiton and POSCO in January 2001, covering a defined resource known as ‘C Deposit’, within the broader Area C mineral lease.

The formal agreement follows extensive trials of the Area C MAC(TM) ore that resulted in the extraction and trial of more than 900,000 tonnes from the deposit over the past year – confirming market acceptance of this high quality Marra Mamba ore.

BHP Billiton President Western Australian Iron Ore and Boodarie Iron Graeme Hunt said the POSMAC joint venture will support the development of Area C as a new source of Marra Mamba ore that will complement steel makers future requirements.

“The POSMAC joint venture represents an important step forward in a new phase of growth in the Pilbara and complements our iron ore strategy to expand the existing iron ore product range and port and railroad infrastructure.

“It is also a very significant extension of the excellent long standing relationship between BHP Billiton Iron Ore and POSCO, who are one of the most efficient steelmakers in the world, he said.”

POSCO Vice President Raw Materials Purchasing Mr. Young Tae Kwon said “POSCO are confident that the POSMAC joint venture would achieve another historical milestone for the two companies’ as well as for Australia and Korea”.

“Both companies are committed to making the joint venture very successful,” he said.

Under the terms of the POSMAC Joint Venture, the BHP Billiton Mt Goldsworthy Mining Associates Joint Venture and POSCO will manage the Area C mine, with contractors Henry Walker Eltin undertaking mining and processing.

The US$213 million Area C development will be completed later this year. About 500 people are involved in construction, reducing to a permanent workforce of about 100 when operations start. A 38km railway will link Area C with BHP Billiton Iron Ore’s existing railway network, via the Yandi mine.

Area C contains 890 million tones of MAC(TM) Marra Mamba ore, which will be sold to meet the growing needs for high ‘value in use’ ore from Asia’s direct blast furnace steelmakers. Development has been planned to produce up to 15 million tonnes per annum (mtpa) by 2011 and provide the system capacity for further easy expansion to meet any future market requirements.

Initial mining will start in ‘C Deposit’ on the northern flank of Area C and contains a reserve of 201 million tonnes.

ORE RESERVE STATEMENT

The information in this report that relates to Mineral Resources and Ore Reserves is based on information compiled by M. Kneeshaw (resources) and P. Schultz (reserves) who are employees of BHP Billiton and who are a Fellow and Member respectively of The Australasian Institute of Mining and Metallurgy.

M Kneeshaw and P Shultz have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 1999 Edition of the "Australasian Code for Reporting of Mineral Resources and Ore Reserves".  M Kneeshaw and P Shultz consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

For further information please contact:

John Crowley
Tel:  08 93204395
Mobile: 0419 849917