BHP BILLITON BOARD APPROVES DENDROBIUM MINE
BHP Billiton today announced approval for the construction of the Dendrobium
metallurgical coal mine in the Illawarra region of New South Wales.
Dendrobium will have the capacity to produce 5.2 million tonnes of raw coal
per annum.  Capital expenditure is estimated at US$126 million.
The BHP Billiton owned and operated Dendrobium mine will be a valuable
source of high quality metallurgical coal, a vital component of a coking
coal blend for domestic steel producers including the BHP Steel Port Kembla
Steelworks, and export markets.
Illawarra Coal is progressively rationalising its mines into increasingly
more productive and cost effective operations. The first rationalisation
occurred with Cordeaux Colliery placed on care and maintenance in April
2001. Dendrobium will replace the nearby Elouera Colliery which is expected
to cease longwall operations following reserves depletion in 2005. The
strategy is designed to further move Illawarra Coal's operations into the
lower cost quartile while being able to continue the supply of premium
coking coal to customers.  Illawarra Coal shipped 5.9 million tonnes of
coking coal in the year ended 30 June 2001, from total BHP Billiton coking
coal shipments of 33.9 million tonnes.
Development will commence immediately with first longwall production
expected by early 2005.  Dendrobium will be a longwall underground mining
operation producing approximately 2.6 million tonnes per annum of
metallurgical coal to be blended for domestic and export consumption and one
million tonnes per annum of thermal coal (by-product) for export
consumption. The mine is expected to reach full production in 2006.
Dendrobium will utilise existing facilities including rail transport, coal
preparation plant and pit top facilities. In addition to providing
replacement coal, the mine will also contribute to lower operating costs
through increased equipment capacity and reduced transportation costs.
BHP Billiton President Carbon Steel Materials Bob Kirkby said: "Dendrobium
will provide our domestic steel customers with a reliable and cost-effective
supply of coking coal, and will be blended with coals from BHP Billiton's
other Illawarra Coal operations to provide a premium product for
international customers."
BHP Billiton Board approval of the project follows an examination of the
recommendations of a recent Commission of Inquiry, which cleared the way for
construction subject to a range of stringent conditions imposed by the New
South Wales Government.
The Dendrobium project will employ 170 mine employees and will generate an
additional 1000 direct and indirect jobs. The mine has the potential to
inject more than A$400 million into the regional economy.
BHP Billiton Illawarra Coal owns and operates four underground coal mines
(Appin, Tower, Elouera and West Cliff) in the Illawarra region of New South
Wales, Australia.  The mines produce coal primarily suitable for coking.
Current production capacity of these mines is 7.9 million tonnes of clean
wet coal per annum.
* * * *
Further information can be found on our Internet site:
http://www.bhpbilliton.com
Australia                      United Kingdom/South Africa
Dr. Robert Porter, Investor    Michael Campbell, Investor &
Relations                      Media Relations
Tel: + 61 3 9609 3540          Tel: +27 11 376 3360
Mobile: +61 419 587 456        Mobile: +27 82 458 2587
email:                         email:
Robert.Porter@bhpbilliton.com  Michael.J.Campbell@bhpbilliton
                               .com
Mandy Frostick, Media
Relations                      Ariane Gentil, Manager
Tel: +61 3 9609 4157           Communications
Mobile: +61 419 546 245        Tel: +44 20 7747 3977
email:                          Mobile: + 44 7881 518 715
Mandy.J.Frostick@bhpbilliton.  email:
com                            Ariane.Gentil@bhpbilliton.com
United States
Francis McAllister, Investor
Relations
Tel: +1 713 961 8625
Mobile: +1 713 480 3699
email:
Francis.R.McAllister@bhpbilli
ton.com