Acquisition by Comalco

Rio Tinto PLC
18 June 2001

                     Comalco moves to 38.6% stake in QAL                      

 
Comalco, a wholly owned subsidiary of Rio Tinto, today announced that it had
signed an agreement with Kaiser Aluminum to purchase an additional 8.3%
equity in the Queensland Alumina Limited (QAL) refinery at Gladstone. The
transaction is subject to certain approvals, including the Foreign Investment
Review Board.
 
The total value of the transaction amounts to approximately US$189 million,
consisting of approximately US$159 million in cash plus Comalco's assumption
of approximately US$30 million of off-balance sheet QAL indebtedness
currently guaranteed by Kaiser. The transaction will increase Comalco's
interest in QAL from 30.3% to 38.6%.
 
Comalco's CEO, Sam Walsh, said the transaction was a continuing demonstration
of Comalco's strong commitment to the Gladstone region.
 
'Queensland Alumina Limited, one of the largest and lowest-cost alumina
refineries in the world, is regarded by Comalco as a core asset,' he said.
 
'Comalco has been a major shareholder in QAL since its inception and we are
very pleased to increase our participation in the Gladstone region's
aluminium industry.'
 
Following completion of the transaction in the third quarter of 2001, the new
ownership structure of QAL will become:
 
 
             Comalco          38.6%

Alcan_____________________________________21.4%

             Kaiser          20.0%

Pechiney__________________________________20.0%

 
 
 
For further information, please contact:
 

                                                                 
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