March Quarterly Report

RNS Number:1517K
Murchison United NL
17 April 2003

Quarterly Report
March 2003

Highlights

__________________________________________________________________________________________

* The Company closed out its currency hedging positions with Westpac
Banking Corporation during the quarter at an effective rate of 61.76 cents and
is currently finalising the release of Westpac's securities over the Company and
its assets.

* Tin production at Renison Bell increased by 43% during the quarter to
1,412 tonnes with the successful development of the Huon 795 stope and
commissioning of a replacement jig circuit. As a result, total production costs
reduced by 23% to US$4,252 per tonne of tin produced.

* Renison Bell achieved a significant safety milestone during the quarter
by recording one year of operations lost time accident free.

* The arrangements with mine contractor Barminco have been revised such
that Barminco will continue to provide contractual mine operating services but
will no longer be required to provide working capital funding and accordingly
will no longer share in surplus cashflow as previously contemplated.

Renison Bell Tin Mine (MUR 100%)

Production

As a result of bringing on line the Huon 795 open stope, mine production
increased by 10% during the quarter. The grade of tin ore treated also
increased from an average of 1.31% to 1.61%.

Tin in concentrate production increased by 43% to 1,412 tonnes as a result of
treating this higher grade ore and improved recoveries following the
commissioning of the replacement jig gravity circuit.

Operating costs

Operating costs and capital expenditure continue to be constrained. Increased
production and ongoing cost management resulted in a 23% reduction in unit
operating costs during the quarter.

Operations March Qtr Dec Qtr Sept Qtr

Ore Mined (tonnes) 125,782 114,732 143,100

Ore Treated (tonnes) 128,077 135,100 139,794

Head Grade (% tin) 1.61 1.31 1.65

Recovery (%) 68.5 55.6 62.2

Tin in Concentrate Produced (tonnes) 1,412 986 1,433

Tin Sales (tonnes) 1,417 946 1,493

Total Cash Costs (A$/tonne) (1) 7,076 9,848 8,843

Total Production Costs (A$/tonne) (2) 7,170 10,172 9,142

Total Cash Costs (US$/tonne) (1) 4,196 5,497 4,841

Total Production Costs (US$/tonne) (2) 4,252 5,678 5,005

(1) Total Cash Costs include the following charges:

Mining, milling, administration, environmental, site specific
corporate charges, refining and transportation costs and royalties.

(2) Total Production Costs include:

Total Cash Costs plus depreciation, amortisation and costs of
estimated rehabilitation expenditure, decommissioning and closure costs.

Agreement with Barminco

The heads of agreement that the Company had entered into with mining contractor
Barminco late last year had come to an end and revised arrangements agreed.

Under the heads of agreement, Barminco was to provide contractual mine operating
and management services and fund the working capital requirements for the
Renison Bell mine. The Company and Barminco were to share equally the surplus
cashflow after Renison Bell had met all its commitments.

Under the revised arrangements, Barminco will continue to provide contractual
mine operating services, but will no longer be required to fund the working
capital requirements. Accordingly, Barminco will no longer share the surplus
cashflow as previously contemplated.

LME Tin Price and stockpiles

Following the collapse in tin prices to the record lows of US$3,500 per tonne in
June 2001, prices have recovered to around US$4,600 per tonne. LME tin
stockpiles have been steadily reducing from the high last year of 38,000 tonnes,
but still remain at historically high levels of 25,000 tonnes.

Occupational Health and Safety

A continued high standard of safety performance was recorded during the period
and by quarter end 358 days lost time injury free had been recorded resulting in
the all time lost time injury frequency rate (LTIFR) falling to 8.12 per million
manhours worked.

Employees

The introduction of more flexible rosters in the mine and mill has been an
important factor in substantially increasing productivity and reducing operating
costs. It is recognised however that there is a balance to be struck between the
attractiveness of the higher incomes of these longer rosters and the potential
for fatigue and adverse social effects beyond the mine gate.

The Tasmanian Government's recent report "The Battle for Time" is a valuable
study of this issue. A detailed review of the rosters employed at Renison Bell
has been undertaken. Discussions are being held with employees with a view to
establishing the most appropriate working rosters at Renison Bell.

Environment

An updated Environmental Management Plan was prepared and submitted during the
previous quarter in accordance with Tasmanian regulatory requirements. The plan
provides for the comprehensive management of all Environmental aspects of the
Renison Bell operations for the next 3 years after which it will be formally
updated. Formal approval of the plan was received during the quarter.

Maroochydore Project

(MUR 50% - Straits Resources Ltd 50%)

No significant activity on this project during the quarter. Straits Resources
Ltd announced that it had completed the sale of its 50% interest in the
Maroochydore Project to the Aditya Birla Group of India for a consideration of
A$10 million.

Hedging

The Company has closed out its currency hedging positions with Westpac Banking
Corporation at an effective rate of 61.76 cents. The monies held on deposit by
the Company with Westpac were used in part settlement of the transaction. The
Company is currently finalising the release of Westpac's securities over the
Company and its assets.

___________________________________________________________________________

This information is provided by RNS
The company news service from the London Stock Exchange
END

MSCUBUKROWRSARR