Ref 15/05

BHP Billiton today announced it had reached agreement with a number of its steel customers on prices for contracted iron ore tonnage for the 2005 contract year.

The agreed prices are as follows:

- Mt Newman High Grade Fines 61.72 US cents per dry metric tonne unit; an increase of 71.5 per cent.

- Prices for Mt Newman High Grade Lump, Pisolite (Yandi), Marra Mamba (Area C MAC™) and Brockman (Yarrie) ores will also increase by the same percentage.

BHP Billiton President Iron Ore Graeme Hunt said the price increases were a result of increasing global steel demand.

“The growing demand for steel is causing a significant increase in demand for our products.  Higher iron ore prices reflect the additional costs we are incurring to meet our customers needs now and in the future through new investment,” he said.

Mr Hunt said that while BHP Billiton was not successful this year gaining recognition of the freight cost advantages to north Asian steel makers in sourcing Australian iron ore, the issue was still relevant.  “We will continue to discuss this issue with our customers in the year ahead,” he said.

Notes:

Iron ore prices are denominated in US cents per dry metric tonne unit, which reflects a common base per unit of iron ore 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 per  cent.

In FY2004, BHP Billiton’s Western Australian iron ore operations shipped a record 88.3 wet million tonnes (100% basis) of ore.

Japan continues to be BHP Billiton Iron Ore’s biggest customer, buying 41 per cent of its products, followed by China (23%), Korea (17%) Australia (9%) and Taiwan (7%).

In 2004, the price of Mt Newman High Grade Lump was 45.93 US cents per dry metric tonne unit; an increase of 18.62 per cent. Mt Newman High Grade Fines was 35.99 US cents per dry metric tonne; an increase of 18.62 per cent.

For further information contact:

Australia
Jane Belcher, Investor Relations
Tel: +61 3 9609 3952  Mobile: +61 417 031 653
email: Jane.H.Belcher@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

Ariane Gentil, Media Relations
Tel: +44 20 7802 4177
email: Ariane.Gentil@bhpbilliton.com

United States
Tel: +1 713 599 6100 or +44 20 7802 4031
email: Mark.Lidiard@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