4Q Production Report-Part 1

Rio Tinto PLC 23 January 2002 PART 1 Rio Tinto Quarterly Production Report For the Quarter ending 31 December 2001 * Iron ore production in 2001 was 25% higher than in 2000. Hamersley established a new production record of 69.9 million tonnes, exceeding 2000 by 6%. Total iron ore shipments remained robust in the fourth quarter of 2001, only marginally lower than the same period in 2000. * Coal production in 2001 was 13% higher than in 2000. US coal production was 6% higher, with strong fourth quarter production at 28.3 million tonnes. Australian coal production was 44% higher resulting from the coal mines acquired in the last quarter of 2000 and the first quarter of 2001. * Mined copper production in 2001 was marginally higher than in 2000. Fourth quarter 2001 production, compared with the equivalent period in 2000, was adversely affected by the closure of the North Concentrator at Kennecott and the decision in November 2001 to reduce production at Escondida. Lower grade reduced production at Grasberg. * Mined gold production was 31% higher in 2001 than in 2000, due to higher grades at a number of operations and the increased capacity acquired with North. * Aluminium production in 2001 was 11% higher than in 2000. Fourth quarter 2001 production improved, primarily due to operating efficiencies at the Boyne Island smelter. * Diamond production in 2001 was 52% higher than in 2000, reflecting the acquisition of Ashton in late 2000. Production in the fourth quarter of 2001 continued to benefit from mining in a higher grade area of the Argyle pit. * Titanium feedstock production in 2001 was 4% higher and borates production 5% lower than in 2000. For further information contact: LONDON MELBOURNE Media Relations Media Relations Lisa Cullimore Fiona Powell + 44 (0) 20 7753 2305 + 61 (0) 3 9283 3620 Investor Relations Investor Relations Peter Cunningham Dave Skinner + 44 (0) 20 7753 2401 + 61 3 (0) 9283 3628 Daphne Morros +61 3 (0) 9283 3639 Website: www.riotinto.com RIO TINTO PRODUCTION SUMMARY RIO TINTO share of production % Change Quarter FULL YEAR Q4 01 Q4 01 2001 2000 2001 2001 2000 2001 vs vs vs Q4 Q3 Q4 Q3 01 Q4 00 2000 Principal Commodities Aluminium ('000 t) 194.7 191.7 196.3 692.3 765.6 2% 1% 11% Borates ('000 t) 149 142 134 590 564 -6% -10% -5% Coal ('000 t) 35,193 36,839 38,648 131,510 148,930 5% 10% 13% Copper - mined ('000 t) 264.0 222.7 205.7 895.6 904.1 -8% -22% 1% Copper - refined ('000 t) 106.3 75.5 100.4 392.0 361.2 33% -6% -8% Diamonds ('000 cts) 4,694 8,045 7,950 17,205 26,100 -1% 69% 52% Gold - mined ('000 ozs) 836 906 830 2,730 3,577 -8% -1% 31% Gold - refined ('000 ozs) 121 88 112 413 389 27% -7% -6% Iron ore ('000 t) 23,159 24,212 23,462 72,453 90,566 -3% 1% 25% Titanium dioxide feedstock ('000 t) 368 359 341 1,368 1,427 -5% -7% 4% Other Metals & Minerals Alumina ('000 t) 436 435 519 1,530 1,761 19% 19% 15% Bauxite ('000 t) 3,111 2,855 2,968 11,005 11,795 4% -5% 7% Lead - mined ('000 t) 10.0 9.5 9.8 24.7 38.8 3% -3% 57% Molybdenum ('000 t) 2.3 1.5 1.6 10.1 8.1 5% -31% -20% Nickel in matte (tonnes) 2,674 2,989 1,984 8,738 10,170 -34% -26% 16% Nickel - refined (tonnes) 927 992 892 3,887 3,719 -10% -4% -4% Salt ('000 t) 711 1,007 1,322 2,987 4,248 31% 86% 42% Silver - mined ('000 ozs) 3,994 4,179 4,272 14,428 17,703 2% 7% 23% Silver - refined ('000 ozs) 821 626 765 3,218 2,882 22% -7% -10% Talc ('000 t) 302 311 315 1,260 1,267 1% 5% 1% Tin (tonnes) 39 192 72 611 588 -63% 83% -4% Uranium (tonnes) 1,418 1,087 1,252 3,446 4,705 15% -12% 37% Zinc - mined ('000 t) 28.8 25.7 27.1 74.2 102.5 5% -6% 38% Zinc - refined ('000 t) 17.3 - - 69.2 20.4 - - - NB Throughout this report, figures in italics indicate adjustments made since the figure was previously quoted on the equivalent page. The figures shown for production are sometimes more precise than the rounded numbers shown, hence small differences may result between the total of the quarter figures and the full year figures. Rio Tinto Share of Production FULL FULL 4Q 1Q 2Q 3Q 4Q YEAR YEAR Interest 2000 2001 2001 2001 2001 2000 2001 ALUMINA Production ('000 tonnes) Eurallumina (a) 56% 146 137 142 127 151 512 557 Queensland Alumina (a) (b) 39% 290 257 271 308 368 1,017 1,204 Rio Tinto total alumina production 436 394 413 435 519 1,530 1,761 ALUMINIUM Refined production ('000 tonnes) Anglesey 51% 19.5 18.0 18.2 17.4 17.5 73.3 71.0 Bell Bay (a) 100% 40.9 39.3 39.8 41.3 40.4 140.8 160.8 Boyne Island (a) 54% 68.9 66.2 67.3 70.6 73.4 245.4 277.5 Tiwai Point (a) 79% 65.4 64.4 64.4 62.4 65.0 232.8 256.2 Rio Tinto total aluminium production 194.7 188.0 189.7 191.7 196.3 692.3 765.6 BAUXITE Production ('000 tonnes) Boke (a) 4% 119 119 120 175 55 499 469 Weipa (a) 100% 2,992 2,913 2,820 2,680 2,913 10,507 11,326 Rio Tinto total bauxite production 3,111 3,032 2,940 2,855 2,968 11,005 11,795 BORATES Borates ('000 tonnes B2O3 content) Rio Tinto total borate production 100% 149 148 139 142 134 590 564 Coal COAL Type Australian coal operations ('000 tonnes) Coal & Allied Industries(c): Bengalla (d) 29% S - 269 414 312 423 - 1,418 Hunter Valley Operations (e) 73% S 1,095 1,067 1,031 1,914 1,933 4,084 5,945 73% M 394 888 705 687 633 2,001 2,913 Mount Thorley Operations 58% S 371 283 341 373 376 1,224 1,373 58% M 333 226 313 403 313 1,259 1,255 Moura (d) 40% S - 145 330 208 184 - 867 40% M - 261 290 282 247 - 1,080 Narama (d 36% S - 142 280 205 162 - 789 Ravensworth East (d) 73% S - 126 357 281 332 - 1,096 Warkworth (d) 40% S - 388 635 584 463 - 2,070 40% M - 68 76 21 57 - 221 Pacific Coal: Blair Athol Coal 71% S 2,406 2,160 2,057 2,000 1,329 7,864 7,546 Kestrel Coal 80% S 226 179 250 348 185 904 962 80% M 381 327 468 572 287 1,733 1,654 Tarong Coal 100% S 1,273 1,293 1,396 1,253 1,333 4,847 5,276 Total Australian coal 6,480 7,822 8,942 9,443 8,256 23,917 34,464 Indonesian coal operations ('000 tonnes) Kaltim Prima Coal (f) 50% S 2,249 1,619 1,869 2,263 2,055 6,568 7,806 US coal operations ('000 tonnes) Kennecott Energy Antelope 100% S 5,240 5,426 5,355 5,525 6,038 20,837 22,344 Colowyo (g) 100% S 1,030 1,276 1,334 1,350 1,271 4,691 5,231 Cordero Rojo 100% S 9,917 9,702 9,621 9,676 10,453 35,038 39,452 Decker 50% S 1,105 1,155 975 993 1,133 4,529 4,255 Jacobs Ranch 100% S 6,635 7,003 7,138 5,404 7,067 25,678 26,612 Spring Creek 100% S 2,538 1,845 2,362 2,185 2,375 10,253 8,767 Total US coal 26,465 26,407 26,785 25,133 28,337 101,026 106,661 Rio Tinto total coal production 35,193 35,848 37,595 36,839 38,648 131,510 148,930 Mine production figures for metals refer to the total quantity of metal produced in concentrates or dore bullion irrespective of whether these products are then refined on-site. Key to coal type: S = Steaming/thermal coal, M = Metallurgical/coking coal. See footnotes on page 6. FULL FULL 4Q 1Q 2Q 3Q 4Q YEAR YEAR Interest 2000 2001 2001 2001 2001 2000 2001 COPPER Mine production ('000 tonnes) Alumbrera (h) 25% 10.3 11.2 12.4 12.0 12.3 15.3 47.9 Bingham Canyon 100% 81.4 80.0 92.4 73.1 67.2 295.7 312.7 Escondida 30% 71.9 64.1 55.9 59.2 53.2 273.5 232.4 Grasberg - FCX (i) 14% 27.7 25.3 24.1 22.9 21.2 870.0 93.5 Grasberg - Joint Venture (i) 40% 44.3 27.1 25.1 23.0 19.1 116.8 94.4 Neves Corvo 49% 5.7 11.2 10.6 8.4 10.5 37.4 40.6 Northparkes (h) 80% 10.0 10.9 10.7 11.4 11.0 15.2 44.1 Palabora (j) 49% 12.7 8.2 6.4 12.5 11.2. 54.7 38.4 Rio Tinto total mine production 264.0 238.1 237.6 222.7 205.7 895.6 904.1 Refined production ('000 tonnes) Atlantic Copper (i) 17% 9.8 10.1 7.8 10.5 10.7 40.1 39.1 Escondida 30% 10.7 10.9 11.5 11.4 11.4 42.1 45.3 Kennecott Utah Copper 100% 71.9 67.0 56.3 43.7 67.3 268.7 234.3 Palabora 49% 14.0 12.4 9.2 9.9 11.0 41.1 42.5 Rio Tinto total refined production 106.3 100.5 84.8 75.5 100.4 392.0 361.2 At the end of the periods, the Group had provisionally priced sales of copper in concentrates and intermediate product as follows: Million lbs of payable copper: Alumbrera (h) 25% 13 20 29 27 24 13 24 Escondida 30% 110 126 141 121 110 110 110 Grasberg (i) 14% 65 50 54 44 40 65 40 Kennecott Utah Copper 100% 37 20 10 0 0 37 0 Neves Corvo 49% 8 13 25 12 5 8 5 Northparkes (h) 80% 15 13 29 19 19 15 19 Rio Tinto total 248 241 289 223 198 248 198 Priced at US c/lb average 83 77 72 65 67 83 67 DIAMONDS Production ('000 carats) Argyle (k) 99.8% 4,657 5,072 5,012 8,032 7,929 17,168 26,045 Others (k) - 37 15 7 13 20 37 55 Rio Tinto total diamond production 4,694 5,086 5,019 8,045 7,950 17,205 26,100 GOLD Mine production ('000 ounces) Alumbrera (h) 25% 33 34 44 44 47 52 168 Barneys Canyon 100% 48 37 30 32 41 153 140 Bingham Canyon 100% 121 151 179 142 120 529 592 Cortez/Pipeline 40% 118 118 122 118 118 404 475 Escondida 30% 9 7 7 7 8 39 30 Grasberg - FCX (i) 14% 100 108 111 99 70 261 388 Grasberg - Joint Venture (i) 40% 190 222 238 220 199 478 880 Greens Creek 70% 15 16 15 15 15 58 62 Kelian 90% 88 94 86 117 110 304 408 Lihir (l) 16% 31 30 26 29 20 99 105 Morro do Ouro 51% 29 24 23 23 24 117 95 Northparkes (h) 80% 4 7 10 7 9 6 33 Peak 100% 26 20 29 28 25 130 101 Rawhide 51% 12 13 14 13 12 53 52 Rio Tinto Zimbabwe 56% 10 11 10 9 8 39 38 Others - 2 3 2 2 3 7 10 Rio Tinto total mine production 836 895 945 906 830 2,730 3,577 Refined production ('000 ounces) Kennecott Utah Copper 100% 121 102 87 88 112 413 389 Mine production figures for metals refer to the total quantity of metal produced in concentrates or dore bullion irrespective of whether these products are then refined on-site. See footnotes on page 6. FULL FULL 4Q 1Q 2Q 3Q 4Q YEAR YEAR Interest 2000 2001 2001 2001 2001 2000 2001 IRON ORE Production ('000 tonnes) Channar 60% 1,687 1,472 1,630 1,622 1,929 6,361 6,653 Corumba 100% 178 156 116 206 164 778 642 Hamersley 100% 14,857 13,579 14,352 15,748 15,149 55,095 58,828 Iron Ore Company Of Canada (h)(m) 56% 2,222 1,874 2,426 2,028 1,841 3,442 8,169 Robe River (h) 53% 4,216 3,594 3,694 4,607 4,379 6,776 16,274 Rio Tinto total mine production 23,159 20,674 22,218 24,212 23,462 72,453 90,566 LEAD Mine production ('000 tonnes) Greens Creek 70% 3.4 3.6 3.4 3.7 3.7 14.2 14.3 Zinkgruvan (h) 100% 6.6 5.7 6.9 5.8 6.1 10.5 24.5 Rio Tinto Total mine Production 10.0 9.3 10.3 9.5 9.8 24.7 38.8 MOLYBDENUM Mine production ('000 tonnes) Bingham Canyon 100% 2.3 2.8 2.2 1.5 1.6 10.1 8.1 NICKEL Nickel in matte (tonnes) Fortaleza 100% 2,674 2,710 2,487 2,989 1,984 8,738 10,170 Toll refined metal production (tonnes) Rio Tinto Zimbabwe - Empress 56% 927 910 925 992 892 3,887 3,719 SALT Production ('000 tonnes) Dampier 65% 711 899 1,020 1,007 1,322 2,987 4,248 SILVER Mine production ('000 ounces) Bingham Canyon 100% 1,005 1,029 1,328 1,076 1,042 3,939 4,475 Escondida 30% 231 255 266 227 212 985 959 Grasberg - FCX (i) 14% 205 213 183 162 141 615 700 Grasberg - Joint Venture (i) 40% 208 76 193 178 193 378 641 Greens Creek 70% 1,567 2,285 1,795 1,814 1,809 6,494 7,703 Zinkgruvan (h) 100% 431 347 396 326 427 702 1,496 Others - 349 429 456 396 448 1,316 1,729 Rio Tinto total mine production 3,994 4,634 4,618 4,179 4,272 14,428 17,703 Refined production ('000 ounces) Kennecott Utah Copper 100% 821 657 834 626 765 3,218 2,882 TALC Production ('000 tonnes) Luzenac Group 99.9% 302 322 318 311 315 1,260 1,267 TIN Mine production (tonnes) Neves Corvo 49% 39 115 210 192 72 611 588 TITANIUM DIOXIDE FEEDSTOCK Production ('000 tonnes) Rio Tinto Iron & Titanium 100% 368 356 371 359 341 1,368 1,427 Mine production figures for metals refer to the total quantity of metal produced in concentrates or dore bullion irrespective of whether these products are then refined on-site, except for the data for iron ore which represent production of saleable quantities of ore plus pellets. The nickel in matte production reflects the contained tonnage of nickel. See footnotes on page 6. Rio Tinto Share of Production FULL FULL 4Q 1Q 2Q 3Q 4Q YEAR YEAR Interest 2000 2001 2001 2001 2001 2000 2001 URANIUM Production (tonnes U3O8) Energy Resources of Australia (h) 68% 832 903 648 540 790 1,207 2,880 Palabora 49% 13 6 5 4 - 45 15 Rossing 69% 573 497 308 544 462 2,195 1,811 Rio Tinto total uranium production 1,418 1,405 960 1,087 1,252 3,446 4,705 ZINC Mine production ('000 tonnes) Greens Creek 70% 10.1 10.0 9.7 10.6 10.5 42.7 40.7 Zinkgruvan (h) 100% 18.7 15.3 14.8 15.1 16.6 31.5 61.8 Rio Tinto total mine production 28.8 25.3 24.5 25.7 27.1 74.2 102.5 Refined production ('000 tonnes) Norzink (n) 0% 17.3 18.2 2.3 - - 69.2 20.4 (a) During 2000, Rio Tinto acquired all the outstanding shares in Comalco. (b) Comalco increased its holding in Queensland Alumina Limited from 30.3% to 38.6%, with effect from 31 August 2001. (c) During March 2001, Rio Tinto increased its stake in Coal & Allied from 70.88% to 72.71%. (d) Coal & Allied has purchased the Australian subsidiaries of the Peabody Group. Production data are shown from 29 January 2001 the effective date of acquisition. Effective on the same date, Coal & Allied acquired an additional 11.8% interest in the Warkworth mine, increasing its interest to 55.57%. (e) Production from the Lemington mine, acquired by Coal & Allied with effect from 20 December 2000, is included with Hunter Valley Operations. (f) Rio Tinto has a 50% share in Kaltim Prima and, under the terms of its Coal Agreement, the Indonesian Government is entitled to a 13.5% share of Kaltim Prima's production. Rio Tinto's share of production shown is before deduction of the Government share. (g) Kennecott Energy has a partnership interest in the Colowyo mine, but, as it is responsible under a management agreement for the operation of the mine, all of Colowyo's output is included in Rio Tinto's share of production. (h)Rio Tinto's share of production from the assets owned by North Limited is shown with effect from 11 August 2000, the effective date of the acquisition. (i) Rio Tinto's initial interests in the Grasberg mine and in the Atlantic Copper smelter were acquired in 1995 by virtue of an acquisition of shares in Freeport-McMoRan Copper & Gold (FCX). As a result of FCX share buy-backs, Rio Tinto's interest in FCX has changed and, as of 31 December 2001, Rio Tinto had, by virtue of its FCX shareholding, a 14.3% share in Grasberg and a 16.6% share in Atlantic Copper. Under the Joint Venture agreement with FCX, Rio Tinto is entitled to 40% of additional material mined as a consequence of the expansion of the Grasberg facilities. The additional entitlement is shown separately in the above tables. (j) Rio Tinto increased its holding in Palabora from 46.5% to 48.6% during November 2000; it acquired a further 0.7% in July 2001. (k) On 10 November 2000, Rio Tinto acquired control of Ashton Mining and, as of 17 January 2001, owned 100%. As a result of this purchase, with effect from 10 November 2000, Rio Tinto's effective interest in Argyle Diamonds increased from 59.7% to 99.8%. Shown separately is Rio Tinto's share of production from Ashton's diamond interests apart from Argyle. (l) Effective 14 February 2000, Rio Tinto's interest in Lihir decreased from 17.15% to 16.3% following a merger under a scheme of arrangement with Niugini Mining. (m) Rio Tinto acquired 20.3% of the Labrador Iron Ore Royalty Income Fund during the first half of 2001. The Fund has a shareholding in Iron Ore Company of Canada but this has not been included in the calculation of tonnage attributable to Rio Tinto. (n) Rio Tinto completed the sale of its interest in Norzink on 17 April 2001. Where Rio Tinto's beneficial interest in an operation has changed, as indicated above, the share of production has been calculated using the weighted average interest over the relevant periods. OPERATIONAL DATA FULL FULL 4Q 1Q 2Q 3Q 4Q YEAR YEAR 2000 2001 2001 2001 2001 2000 2001 ALUMINIUM Anglesey Aluminium Total production at Anglesey Aluminium (Rio Tinto 51%) in the UK. (100% basis) Aluminium hot metal production ('000 tonnes) 38.2 35.3 35.7 34.0 34.2 143.8 139.3 Comalco (a) Total production at Comalco operations; Weipa (Rio Tinto 100%) in Australia; Boke (Rio Tinto 4%) in Guinea; Eurallumina (Rio Tinto 56.2%) in Italy; Queensland Alumina (Rio Tinto 38.6% (b)) in Australia; Bell Bay (Rio Tinto 100%) in Australia; Boyne Island (Rio Tinto 54.2%) in Australia and Tiwai Point (Rio Tinto 79.4%) in New Zealand. (100% basis) Weipa mine, Queensland Beneficiated bauxite Production ('000 tonnes) 2,992 2,913 2,820 2,680 2,913 11,767 11,326 Metal grade bauxite shipments ('000 tonnes) 2,965 2,841 2,658 2,678 2,831 11,518 11,008 Calcined bauxite Production ('000 tonnes) 29 33 41 49 23 129 146 Boke mine Bauxite production ('000 tonnes) 2,624 3,168 2,983 3,046 2,790 12,677 11,987 Eurallumina SpA, Sardinia Alumina production ('000 tonnes) 260 244 254 226 269 1,022 993 Queensland Alumina Limited, Queensland Alumina production ('000 tonnes) 956 847 894 930 953 3,762 3,624 Bell Bay, Tasmania Primary aluminium production ('000 tonnes) 40.9 39.3 39.8 41.3 40.4 157.4 160.8 Boyne Island, Queensland Primary aluminium production ('000 tonnes) 126.3 122.5 125.2 129.7 131.5 505.1 508.9 Tiwai Point Primary aluminium production ('000 tonnes) 82.2 81.0 81.4 78.7 81.2 328.4 322.3 Sales of aluminium attributable to Comalco ('000 tonnes) 191.2 155.1 183.5 185.8 165.4 701.0 689.9 (a) During 2000, Rio Tinto acquired all the shares in Comalco and now owns 100%. (b) Comalco increased its shareholding in Queensland Alumina Limited from 30.3% to 38.6% with effect from 31 August 2001. Weipa production returned to a more normal level in the fourth quarter of 2001 following limited equipment availability during the third quarter of 2001. Only one Boke shipment occurred during the fourth quarter. Total alumina production in the fourth quarter of 2001 improved compared with the third quarter of 2001. Production restrictions and unscheduled maintenance at the two refineries resulted in lower than anticipated production in the first nine months of 2001. Production at the Boyne Island smelter increased compared with the first three quarters of 2001 due to improved cell power efficiency and increased amperage. Production increased in the fourth quarter of 2001 at the Tiwai Point smelter following the restart of some cells previously taken off line due to limited power supply as a result of drought conditions. Aluminium sales in the fourth quarter of 2001 declined compared with the third quarter due to inventory build up, particularly in the US, and the timing of shipments. BORATES Rio Tinto Borax Total production at the Boron mine (Rio Tinto 100%) in California, US and at the Tincalayu, Sijes, Porvenir and Maggie mines (Rio Tinto 100%) in Argentina. (100% basis) Borates ('000 tonnes) (a) 149 148 139 142 134 590 564 (a) Production is expressed as B2O3 content. COAL Coal & Allied Industries Limited (a) Total production and sales from the Bengalla mine (Rio Tinto 29% (a)); Hunter Valley Operations (Rio Tinto 73% (a)); the Mount Thorley Operations (Rio Tinto 58% (a)); the Narama mine (Rio Tinto 36% (a)); the Ravensworth East mine (Rio Tinto 73% (a)) and the Warkworth mine (Rio Tinto 40% (a),(b)), all in New South Wales, and the Moura mine (Rio Tinto 40% (a)) in Queensland, Australia. (100% basis) Bengalla mine (b) Thermal coal production ('000 tonnes) - 944 1,423 1,073 1,454 - 4,894 Hunter Valley Operations (d) Thermal coal production ('000 tonnes) 1,545 1,500 1,418 2,632 2,659 5,762 8,209 Semi-soft coking coal Production ('000 tonnes) 556 1,248 970 945 871 2,823 4,034 Mount Thorley Operations Thermal coal: production ('000 tonnes) 656 497 588 643 648 2,164 2,376 Semi-soft coking coal Production ('000 tonnes) 588 397 540 694 540 2,225 2,171 Moura mine (b)(c) Thermal coal production ('000 tonnes) - 370 825 521 459 - 2,175 Semi-soft coking coal production ('000 tonnes) - 643 722 472 438 - 2,275 Coking coal production ('000 tonnes) - 22 3 234 179 - 438 Narama mine (b)(c) Thermal coal production ('000 tonnes) - 399 769 564 445 - 2,177 Ravensworth East Mine (b)(c) Thermal coal production ('000 tonnes) - 177 491 386 457 - 1,511 Warkworth mine (b) Thermal coal production ('000 tonnes) - 979 1,571 1,446 1,145 - 5,141 Semi-soft coking coal production ('000 tonnes) - 172 187 51 140 - 550 Total Coal & Allied Total coal production ('000 tonnes) 3,345 7,348 9,507 9,661 9,435 12,974 35,951 Total sales ('000 tonnes) (e) 2,989 7,694 9,507 9,009 9,503 13,152 35,713 (a) During March 2001, Rio Tinto increased its stake in Coal & Allied from 70.88% to 72.71%. (b) Coal & Allied purchased the Australian subsidiaries (see note (c))of the Peabody Group effective 29 January 2001. Effective on the same date Coal & Allied acquired an additional 11.8% interest in the Warkworth mine. (c) On 20 November 2001, Coal & Allied announced that a formal process for the sale of its share of Moura had commenced. An agreement to sell Coal & Allied's share of Narama and Ravensworth, subject to certain conditions, was announced on 20 December 2001. (d) Hunter Valley Operations consist of the merged Howick and Hunter Valley mines, plus the Lemington mine acquired with effect from 20 December 2000. (e) Sales relate only to coal mined by the operations and exclude traded coal. Coal production for Hunter Valley Operations increased in the second half of 2001 compared with the first half of 2001 due to improved overburden removal and increasing washery availability as a result of operating plants seven days a week. The increased coal production at Hunter Valley Operations for the 2001 year is due to the acquisition of the Lemington mine in December 2000. Coal production at the Warkworth mine in the fourth quarter of 2001 was affected by dragline and preparation plant maintenance. First quarter 2001 figures for Moura, Warkworth, Ravensworth East, Narama and Bengalla are taken from the date of acquisition and reflect two months of ownership. Kaltim Prima Coal Total production and shipments from Kaltim Prima Coal (Rio Tinto 50%) in Indonesia, including the share of production attributed to the Indonesian Government (see footnote (f) on page 6). (100% basis) Thermal Coal: Production ('000 tonnes) 4,497 3,238 3,737 4,526 4,110 13,135 15,611 Shipments ('000 tonnes) 5,227 3,309 3,622 4,205 4,505 13,254 15,641 Production in the fourth quarter of 2001 was affected by a two week strike by one of KPC's mining contractors and by wet weather. Kennecott Energy and Coal Company Total production from the mines operated by Kennecott Energy and Coal Company in the US: Antelope (Rio Tinto 100%) in Wyoming; Cordero Rojo (Rio Tinto 100%) in Wyoming; Jacobs Ranch (Rio Tinto 100%) in Wyoming; Spring Creek (Rio Tinto 100%) in Montana; Decker (Rio Tinto 50%) in Montana and Colowyo in Colorado, where Kennecott Energy has a partnership interest and full management responsibility (see footnote (g) on page 6). (100% basis) Antelope mine Thermal coal production ('000 tonnes) 5,240 5,426 5,355 5,525 6,038 20,837 22,344 Colowyo mine Thermal coal production ('000 tonnes) 1,030 1,276 1,334 1,350 1,271 4,691 5,231 Cordero Rojo mine Thermal coal production ('000 tonnes) 9,917 9,702 9,621 9,676 10,453 35,038 39,452 Decker mine Thermal coal production ('000 tonnes) 2,210 2,310 1,949 1,985 2,266 9,057 8,510 Jacobs Ranch mine Thermal coal production ('000 tonnes) 6,635 7,003 7,138 5,404 7,067 25,678 26,612 Spring Creek mine Thermal coal production ('000 tonnes) 2,538 1,845 2,362 2,185 2,375 10,253 8,767 Total Kennecott Energy Total coal production ('000 tonnes) 27,570 27,562 27,759 26,125 29,470 105,554 110,916 Production for the fourth quarter of 2001 was 7% higher than in the same period of 2000. Mild weather and the continued economic slowdown resulted in softening of the coal market in the second half of the year. In addition, production was adversely affected by lower equipment availability at the Jacobs Ranch mine. Full year coal production was 5% higher than for 2000. This information is provided by RNS The company news service from the London Stock Exchange MORE TO FOLLOW

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