BHP Billiton Settles 2004 Lump Iron Ore Price

BHP Billiton today announced it had reached agreement with Nippon Steel on the price of its Lump iron ores for the year commencing 1 April 2004. Negotiations with other Japanese customers are continuing.

The agreed price is as follows:

• Mt Newman High Grade Lump 45.93 US cents per dry metric tonne unit; an increase of 18.62 per cent.*

Prices for BHP Billiton’s other Lump iron ore products will increase by similar percentages.

*Notes:

• Following agreement on the annual percentage change, Japanese iron ore prices are denominated in US cents per dry metric tonne unit, which reflects a common base per unit of iron content.
  
• To determine the USD price per tonne, the following conversion formula must be used:
• US cents per dry metric tonne unit multiplied by iron content
• The iron content for Mt Newman Lump ores is about 65%
  
• In FY2003 BHP Billiton’s Western Australian iron ore operations sold 80.3 million tonnes (100% basis) of ore.
  
• Lump ores represented about 25% of BHP Billiton’s FY2003 sales.
  
• The reference price of Fine ores is usually established first as this represents about  60% of the traded market. Prices for Lump and Pellets are then usually determined as a premium to the Fines price.

For further information please contact:

Australia
Andrew Nairn, Investor Relations
Tel: +61 3 9609 3952  Mobile: +61 408 313 259
email: Andrew.W.Nairn@bhpbilliton.com

Tania Price, Media Relations
Tel: +61 3 9609 3815  Mobile: +61 419 152 780
email: Tania.Price@bhpbilliton.com

United Kingdom
Mark Lidiard, Investor & Media Relations
Tel: +44 20 7802 4156
email: Mark.Lidiard@bhpbilliton.com

United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625  Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com

South Africa
Michael Campbell, Investor & Media Relations
Tel: +27 11 376 3360  Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com