Announcements - 12th April 1999

BHP has notified Kenmare of its intention to withdraw from the Mozambique Titanium Joint Venture with Kenmare Resources. As a result, BHP will retain no interest in the Joint Venture, and the licence and all associated data will revert to Kenmare.

This BHP decision comes after widespread media reports that BHP is reducing its exploration and development budget by more than $60 million in the financial year 1999/2000 following recent significant declines in BHP's reported profits.

We understand that this decision is part of a strategic withdrawal from the titanium minerals industry, following the recent announcement of the closure of BHP's Beenup titanium minerals mine and the recent sale of their Hawks Nest titanium minerals interests.

The Mozambique Titanium mining licence is in good standing. Kenmare is now following up on recent approaches from other potential partners.

BHP work confirmed the Kenmare project as one of the largest and richest undeveloped titanium mineral deposits in the world. The Joint Venture has already established a resource of 36 million tonnes of ilmenite and further substantial mineralisation is indicated. Mozambique continues to attract large scale investment because of its political stability and attractive investment environment.