Adoption of IFRS

Rio Tinto PLC
05 May 2005


Adoption of International Financial Reporting Standards

Rio Tinto will report its results for the six months to 30 June 2005 and
subsequent periods in accordance with International Financial Reporting
Standards (IFRS).  This statement presents the Group's IFRS balance sheets as at
31 December 2004 and 30 June 2004 together with the Group's IFRS results and
cash flows for the periods then ended.  It also presents and explains the
differences between the Group's results and shareholders' equity under IFRS and
the amounts previously reported for these periods under UK Generally Accepted
Accounting Principles (UK GAAP).

Salient points for year ended 31 December 2004

•   The change to reporting under IFRS does not affect the cash flow 
    generation of Rio Tinto's businesses and hence will not affect any 
    commercial decisions.

•   2004 IFRS reported cash flow from operations, which includes dividends from 
    equity accounted joint ventures and associates, is $4.5 billion pre-tax.

•   Net debt of $3.8 billion is practically unchanged under IFRS.

•   IFRS Net Earnings were $405 million higher than UK GAAP Net
    Earnings (which included the amortisation of goodwill).

•   To enhance understanding of the performance of Rio Tinto's businesses 
    an alternative earnings measure, Underlying Earnings, will be
    presented in addition to Net Earnings.

•   IFRS Underlying Earnings for 2004 were $2,272 million which compares 
    with $2,221 million for UK GAAP Adjusted Earnings (which included the
    amortisation of goodwill).

•   Shareholders' equity at 31 December 2004 is $707 million (six per
    cent) lower than UK GAAP.

IFRS is continuing to evolve through the issue and/or endorsement of new
Standards and Interpretations and developments in the application of recently
issued Standards.  For that reason, it is possible that the amounts included in
this announcement will change before they are presented as comparatives to the
IFRS financial information issued by the Group in respect of the periods to 30
June 2005 and 31 December 2005.  The amounts presented in this release do not
reflect IAS 39 'Financial Instruments: Recognition and Measurement' which will
be adopted with effect from 1 January 2005.

               All dollars are US dollars unless otherwise stated




Net Earnings and Underlying Earnings


   Year ended 31 December 2004                                                     IFRS         UK GAAP
   US$ millions
   Net Earnings                                                                   3,218           2,813

   Items excluded from Underlying Earnings/Adjusted Earnings
   Asset write downs and provision for contract obligation                          321             321
   Profit on disposals of interests in businesses                               (1,175)           (913)
   Effect of exchange on US dollar debt                                            (80)               -
   Mark to market of derivatives                                                   (12)               -

   Underlying Earnings/Adjusted Earnings                                          2,272           2,221

   All numbers are stated net of tax and outside interests



Under UK GAAP, Rio Tinto presented an alternative measure of earnings, Adjusted
Earnings, to provide insight into the underlying performance of its business.
To achieve the same aim under IFRS, Rio Tinto will present Underlying Earnings
as well as Net Earnings.  The complexity of IFRS results in a greater number of
items that need to be excluded from Net Earnings to provide a measure of
underlying performance.  Underlying Earnings will exclude impairments of non
current assets and gains and losses from disposals of interests in businesses.
It will also exclude certain items that, although included in the IFRS Income
Statement, do not reflect the economic impact of the related transaction.  For
example, exchange differences on US dollar debt that are included in the US
dollar IFRS Income Statement will be excluded from Underlying Earnings.
Finally, as with Adjusted Earnings, Underlying Earnings will exclude
transactions that are of a nature and size to require exclusion in order to
achieve its aim of providing insight into the underlying performance of the
business.  The outcome is a measure of underlying performance that is similar to
Adjusted Earnings.  A fuller description of the exclusions from Underlying
Earnings is on page 18.



Reconciliation of UK GAAP Earnings to IFRS Earnings


   Year ended 31 December 2004                               Adjusted           
                                                        Earnings/Underlying 
   US$ millions                                              Earnings        Net Earnings

   UK GAAP                                                      2,221               2,813
   Reversal of goodwill amortisation               77
   Post retirement benefits                        25
   Share based payments                          (27)
   Deferred tax                                   (7)
   Other                                         (17)
                                                                   51                  51
   Profits on disposals of interests in businesses                                    262
   Effect of exchange on US dollar debt                                                80
   Mark to market of derivatives                                                       12

   IFRS                                                         2,272               3,218

   All adjustments are stated net of tax and outside interests



Reconciliation of shareholders' equity under UK GAAP to shareholders' equity
under IFRS



   US$ millions                                                31 Dec     1 Jan
                                                                 2004      2004

   Shareholders' equity under UK GAAP                          12,584    10,037

   Deferred tax                                                 (899)     (885)
   Post retirement benefits                                     (764)     (659)
   Dividends                                                     626        469
   Exchange differences on capital expenditure hedges            162         93
   Goodwill                                                       74          -
   Mark to market of derivatives                                  99        139
   Other                                                         (5)          6

   Shareholders' equity under IFRS                            11,877      9,200

   All adjustments are stated net of tax and outside interests



The Group's transition date for IFRS is 1 January 2004.  The principal
differences between UK GAAP and IFRS are described below.  All financial numbers
are stated after tax and outside shareholders' interests.


Reversal of goodwill amortisation

The systematic amortisation of goodwill under UK GAAP, by an annual charge to
the profit and loss account, will cease under IFRS. It will be replaced by
annual impairment reviews of the carrying value of goodwill.  Impairment charges
relating to goodwill are quite likely in future reporting periods due to the
finite life of the associated ore body.  The charges may vary significantly from
period to period.

The impact on Net Earnings in 2004 was a $77 million reduction (to zero) of the
charge for amortisation of goodwill.  At 31 December 2004, this increases the
goodwill balance under IFRS by $74 million because the goodwill amortised under
UK GAAP in 2004 has been reversed.


Post-retirement benefits

Under UK GAAP, the Group applied SSAP 24, 'Accounting for Pension Costs' under
which post retirement benefit surpluses and deficits were spread over the
expected average remaining service lives of relevant current employees.  The
International Accounting Standards Board (IASB) issued an amendment to IAS 19 '
Employee Benefits' in December 2004.  In preparing the IFRS information in this
release, the directors have assumed that this revised standard will be endorsed
by the EU and adopted in the Group's 2005 financial statements.  Under IAS 19
the basis of calculating the surplus or deficit under IFRS differs from SSAP 24.
In addition, IAS 19 permits three alternative ways in which the surplus or
deficit can be recognised.  The Group has chosen to recognise actuarial gains
and losses directly in shareholders' equity via the Statement of Recognised
Income and Expense.  The annual service cost and net financial income on the
assets and liabilities of the Group's post retirement benefit plans are
recognised through Net Earnings.

The impact on Net Earnings in 2004 was a $25 million reduction in the charge for
post retirement benefits.

At 31 December 2004, the different bases for calculating the surplus or deficit
and determining the amounts recognised on the balance sheet results in
additional provisions of $764 million (net of deferred tax and outside
interests) in the IFRS balance sheet compared to the UK GAAP balance sheet.


Share based payments

Under UK GAAP, no cost was recognised in respect of the Group's share option
schemes. IFRS requires the economic cost of share option plans to be recognised
by reference to fair value on the grant date, and charged to the Income
Statement over the expected vesting period.  The IFRS charge in 2004 was $27
million and is included in Underlying Earnings.


Deferred tax on fair value adjustments arising on acquisitions

UK GAAP requires the recognition of deferred tax on all fair value adjustments
to monetary items, and on fair value adjustments which reduce the carrying value
of non-monetary items.  IFRS requires deferred tax to be recognised on all fair
value adjustments, other than those recorded as goodwill.  IFRS Net Earnings
will therefore benefit as the additional deferred tax provisions on upward
revaluations of non-monetary items are released to the Income Statement in line
with the amortisation of the related fair value adjustments.

For future acquisitions, these additional deferred tax provisions will be offset
by increases to the value of goodwill or other acquired assets.  For
acquisitions prior to 1 January 2004, the increase in provisions has been
reflected as a reduction in opening shareholders' equity.

The impact on IFRS Net Earnings for 2004 was an increase of $29 million.  At 31
December 2004, the IFRS balance sheet includes additional provisions of $720
million relating to deferred tax on fair value adjustments for prior year
acquisitions.


Deferred tax on unremitted earnings

Under UK GAAP, tax was only provided on unremitted earnings to the extent that
dividends were accrued or if there was a binding agreement for the distribution
of earnings at the reporting date.  Under IFRS, full provision must be made for
tax arising on unremitted earnings from subsidiaries, joint ventures and
associated companies, except to the extent that the Group can control the timing
of remittances and remittance is not probable in the foreseeable future.

The impact on IFRS net earnings was a reduction of $16 million.  At 31 December
2004, the IFRS balance sheet includes additional provisions of $74 million
relating to deferred tax balances on unremitted earnings.


Deferred tax related to closure costs

Under IFRS, deferred tax is not provided on the depreciation of capitalised
closure costs except to the extent that the capitalised amount was first
recognised in accounting for an acquisition.  This reduced IFRS Net Earnings for
2004 by $20 million and reduced IFRS shareholders' equity at 31 December 2004 by
$105 million.


Profits on disposal of subsidiaries, joint ventures, associates and undeveloped
properties

Differences occur in the measurement of the accounting gain on such transactions
where there are differences in the book value of assets under the respective
accounting rules.  In 2004, the majority of the additional profit under IFRS
arose because under UK GAAP goodwill that had been eliminated against reserves
at the time of acquisition was reinstated and charged against earnings at the
time of disposal.   Such reinstatement does not apply under IFRS.  In 2004 this
increased IFRS Net Earnings by $262 million.


Exchange differences on net debt

The Group finances its operations primarily in US dollars, which is the currency
in which the majority of its revenues are denominated.  A substantial part of
the Group's US dollar debt is located in subsidiaries having functional
currencies other than the US dollar.  Under IFRS, exchange gains and losses
relating to US dollar debt and certain intragroup financing balances are
included in the Group's US dollar Income Statement, whereas under UK GAAP they
were taken to reserves. In 2004 this increased IFRS net earnings by $80 million.
Under both IFRS and UK GAAP the offsetting differences arising on the
translation into US dollars of the local currency balance sheets are taken to
reserves.

There is no difference between the IFRS Balance Sheet and the UK GAAP Balance
Sheet due to these items.

At 1 January 2005, the main currency exposures arising from net debt and
intragroup financing balances were liabilities of US$1.7 billion accounted for
in Australian dollars and liabilities of US$0.5 billion accounted for in
Canadian dollars.  The exchange differences recorded in the Income Statement are
a function not only of fluctuations in exchange rates but also fluctuations in
the level of these balances during the period.


Mark to market of derivative contracts

It remains the Group's general policy not to hedge on-going exposures to
fluctuations in exchange rates, prices or interest rates although the Group is
party to some derivative contracts.  For example, the Group holds derivative
contracts taken out by Group companies prior to their acquisition and from time
to time the Group has used forward foreign currency contracts to hedge the non
US dollar component of capital projects.

Some derivative contracts that qualified for hedge accounting under UK GAAP do
not qualify for hedge accounting under IFRS because the instrument is not
located in the operation which carries the exposure.  These contracts are marked
to market under IFRS, thereby giving rise to charges or credits to the Income
Statement in periods before the hedged transaction is recognised.

At 31 December 2004, the marked to market value of derivative contracts, that
under UK GAAP would have been eligible for hedge accounting, increases
shareholders' equity by $99 million.


Exchange differences on capital expenditure hedges

Some of the derivative contracts that were taken out to fix the non US dollar
component of capital expenditure in previous periods do not qualify for hedge
accounting under IFRS.  The adjustment to the carrying value of property, plant
& equipment that under UK GAAP had been stated net of realised exchange gains
and losses on forward contracts hedging capital expenditure, increases
shareholders' equity by $162 million.


Dividends

Under IFRS, dividends that do not represent a present obligation at the
reporting date are not included in the balance sheet.  Hence, the Companies'
proposed dividends are not recognised in the Group accounts until the period in
which they are declared by the directors.

This has no effect on Net Earnings or Underlying Earnings, but increases
shareholders' equity at 31 December 2004 by $626 million.


Functional currencies

From 2005, the functional currencies of Rio Tinto's operations will be their
local currencies with the exception of Escondida, Grasberg JV and Lihir for
which the functional currency is the US dollar.


IAS 39 and IAS 32

The Group has elected to adopt IAS 32 'Financial Instruments: Disclosure and
Presentation' and IAS 39 'Financial Instruments: Recognition and Measurement'
with effect from 1 January 2005 with no restatement of comparative information.
The financial information for 30 June 2004 and 31 December 2004 does not
therefore incorporate the effect of these Standards.


Subsidiaries, joint ventures and associates

The basis for determining the presentation of partially owned operations in the
Group's financial statements differs in certain respects between IFRS and UK
GAAP.  The Group has decided to adopt equity accounting for all jointly
controlled entities.

Kennecott Energy's Colowyo operation, which under UK GAAP was equity accounted,
is consolidated under IFRS.  Anglesey Aluminium, which was consolidated is now
equity accounted.

Boyne Island Smelters, Queensland Alumina Limited, Eurallumina and NZAS which
were proportionately consolidated under UK GAAP will be equity accounted under
IFRS.  This results in significant increases in accounts receivable and accounts
payable in the Group balance sheet because amounts due to or from these
operations by the rest of the Group are no longer eliminated on consolidation.

Rio Tinto Coal Australia's Bengalla, Mount Thorley, Blair Athol, Hail Creek,
Kestrel and Warkworth mines, Kennecott Minerals' Greens Creek mine and the
Grasberg Joint Venture which were equity accounted under UK GAAP will be
proportionately consolidated under IFRS.


Cash flow statement and net debt

The pre-tax cash flow from operations of $4,452 million, including dividends
from equity accounted joint ventures and associates, is practically the same
under IFRS as it was under UK GAAP.  Some operations previously equity accounted
under UK GAAP are proportionately consolidated under IFRS and vice versa, with
the effect that the increase in cash flow from subsidiary operations is largely
offset by lower reported dividends from equity accounted joint ventures and
associates.  These reclassifications are explained fully above.

Similarly, net debt of $3,809 million is only $58 million higher under IFRS
reflecting changes between equity accounting and proportionate consolidation for
some operations.  A sizeable proportion of Rio Tinto's borrowings are
denominated in currencies other than US dollar and then swapped into US dollars.
Under UK GAAP, these borrowings are accounted for as if they were in US
dollars.  Under IFRS, the exchange gains and losses on the swaps must be shown
separately in the balance sheet as financial assets or financial liabilities as
appropriate.  A reconciliation of net debt to the various balance sheet
categories is shown on page 19.  There is no change to the Group's treasury
policy, which is to manage net debt after taking account of such currency swaps.

Gearing increases from 22 per cent under UK GAAP to 23 per cent under IFRS
because of the reduction in shareholders' equity shown above.  IFRS interest
cover is 20 times (UK GAAP 20 times).


Non IFRS changes to segmental analysis

In addition to the differences in accounting rules laid down by IFRS, the
following changes have been made to the way Rio Tinto presents its results.


Product groups/Business segments

The presentation of performance by business unit has been amended to reflect
recent changes in management responsibilities.  Rio Tinto Brasil is reported as
part of the Iron Ore product group and Kennecott Land is reported in 'other
operations'.  Both were previously reported as part of the Copper product group.
  Reflecting the new management structure implemented in 2004, the results of
Coal & Allied are combined with those of Rio Tinto Coal Australia.  In line with
its obligations as a listed company Coal & Allied Industries Limited will
continue to report its results separately.


US tax group

Certain adjustments relating to deferred taxation in operations in the US tax
group, which were previously reported in 'other items', are reported within the
US business units.  This presentation more accurately reflects the performance
of those business units.


Exploration incurred by business units

In addition to expenditure managed by Rio Tinto's Exploration group, the charge
to the Income Statement for exploration and evaluation includes expenditure on
early stage evaluation of exploration discoveries and near mine exploration
expenditure managed by Rio Tinto's product groups and business units.  In
future, all near mine exploration will be reported as part of the respective
product group to reflect the management accountability for the expenditure.

The tax and exploration reallocations above have not been reflected in the UK
GAAP columns of the business unit tables on pages 21-22 and pages 29-30.



For further information, please contact:


LONDON                                             AUSTRALIA

Media Relations                                    Media Relations

Lisa Cullimore                                     Ian Head
Office:  [phone]                      Office:  [phone]
Mobile: [phone]                       Mobile: [phone]


Investor Relations                                 Investor Relations

Nigel Jones                                        Dave Skinner
Office:  [phone]                      Office:  [phone]
Mobile: [phone]                       Mobile: [phone]
Richard Brimelow                                   Susie Creswell
Office:  [phone]                      Office:  [phone]
Mobile: [phone]                       Mobile: [phone]



Website: www.riotinto.com





Rio Tinto restatement of 2004 Financial Information under IFRS

INTRODUCTION

The European Union (EU) approved a Regulation in 2002 that requires listed
companies in the EU (including Rio Tinto plc) to prepare consolidated financial
statements for accounting periods beginning on or after 1 January 2005 in
accordance with the Standards and Interpretations included within International
Financial Reporting Standards (IFRS) that have been endorsed by the EU.
Similarly, Australian companies (including Rio Tinto Limited) are required to
adopt IFRS from 1 January 2005.  Accordingly, Rio Tinto will prepare its
consolidated accounts for the six months ending 30 June 2005 and subsequent
reporting periods on the basis of the Standards and Interpretations within IFRS
that have been (or, in the case of the interim accounts, are expected to be)
endorsed by the EU.

As part of the Group's transition to IFRS, the directors have prepared IFRS
financial information for the six months ended 30 June 2004 and the year ended
31 December 2004 (hereinafter 'the 2004 IFRS financial information'), which is
included on pages 23 to 30 and pages 15 to 22 of this Press Release
respectively.  It is intended that this financial information will be included
as comparative information in the Group's half year report for the period ending
30 June 2005 and its financial statements for the year ending 31 December 2005
respectively.

The basis of preparation and accounting policies used in preparing the 2004 IFRS
financial information are set out below, which describe how IFRS has been
applied under IFRS 1, including the assumptions made by the Group about the
Standards and Interpretations expected to be effective, and the policies
expected to be adopted, when the Group issues its first complete set of IFRS
financial statements for the year ending 31 December 2005.  However, the basis
of preparation and accounting policies may require adjustment before the Group
issues its first complete set of IFRS financial statements.

This is because Standards currently in issue and endorsed by the EU are subject
to Interpretations issued from time to time by the International Financial
Reporting Interpretations Committee ('IFRIC'), and further Standards may be
issued by the International Accounting Standards Board ('IASB') that will be
adopted by the Group in its first complete set of IFRS financial statements for
the year ending 31 December 2005.  Also, the directors have assumed that the
Group's first complete set of IFRS financial statements will be able to reflect
certain Standards and Interpretations currently in issue which have yet to be
endorsed by the EU.

Additionally, IFRS is currently being applied in a large number of countries for
the first time.  Due to a number of new and revised Standards included within
IFRS, there is not yet a significant body of established practice on which to
draw in forming opinions regarding interpretation and application.  Accordingly,
practice is continuing to evolve.

At this preliminary stage, therefore, the full financial effect of reporting
under IFRS as it will be applied in the Group's first complete set of IFRS
financial statements for the year ending 31 December 2005 may be subject to
change.


BASIS OF PREPARATION

Except as described below, the 2004 IFRS financial information on pages 15 to 30
has been prepared on the basis of all IFRS Standards and Interpretations
published by 31 December 2004.

A number of IFRS Standards and Interpretations are not yet mandatory but can be
adopted early under their respective transition arrangements. The Group has
early adopted IFRS 6 'Exploration for and Evaluation of Mineral Resources', the
amendment to IAS 19 'Employee Benefits: Actuarial Gains and Losses, Group Plans
and Disclosures' and IFRIC 5 'Rights to Interests arising from Decommissioning,
Restoration and Environmental Rehabilitation Funds'.  These Standards and
Interpretations have not yet been endorsed by the EU.

In preparing the 2004 IFRS financial information, the Group has not applied the
following pronouncements for which adoption is not mandatory until the year
ending 31 December 2006 and which have not yet been endorsed by the EU:

   IFRIC 3 'Emission Rights'
   IFRIC 4 'Determining Whether an Arrangement Contains a Lease'

The Group is currently evaluating the impact of these pronouncements and may
decide to adopt them in the year ending 31 December 2005, assuming they are
endorsed by the EU - in which case the 2004 IFRS financial information will need
to be restated.

The Group's transition date to IFRS is 1 January 2004.  The rules for first-time
adoption of IFRS are set out in IFRS 1 'First-time adoption of International
Financial Reporting Standards'.  In preparing the 2004 IFRS financial
information, these transition rules have been applied to the amounts reported
previously under generally accepted accounting principles in the United Kingdom
('UK GAAP').

IFRS 1 generally requires full retrospective application of the Standards and
Interpretations in force at the first reporting date. However, IFRS 1 allows
certain exemptions in the application of particular Standards to prior periods
in order to assist companies with the transition process.  Rio Tinto has applied
the following exemptions:


•    The Group has not restated business combinations that occurred before
     the date of transition to comply with IFRS 3 'Business Combinations'. 
     This means that:

     -   The 1995 merger of the economic interests of Rio Tinto plc and 
         Rio Tinto Limited into the dual listed companies ('DLC') structure 
         continues to be accounted for as a merger;

     -   Additional deferred tax provisions recognised in respect of upward
         revaluations of non-monetary assets held by previously acquired 
         entities have been recognised as a reduction of shareholders' funds 
         on the date of transition;

•    The Group has deemed cumulative translation differences for foreign
     operations to be zero at the date of transition. Any gains and losses on
     subsequent disposals of foreign operations will not therefore include
     translation differences arising prior to the transition date;

•    The Group has elected to adopt IAS 32  'Financial Instruments: Disclosure 
     and Presentation' and IAS 39 'Financial Instruments: Recognition and
     Measurement' with effect from 1 January 2005, with no restatement of 
     comparative information for 2004. Accounting policy note (p) explains 
     the basis of accounting for financial instruments in the 2004 IFRS 
     financial information;

•    The Group has elected to adopt IFRS 5 'Non-current Assets Held for Sale 
     and Discontinued Operations' with effect from 1 January 2005, with no
     restatement of comparative information for 2004; and

•    The Group has applied IFRS 2 'Share-based Payment' retrospectively to all 
     share-based payments which had not vested at 1 January 2004, the date 
     chosen by the Group as the effective date for application of IFRS 2.


In addition, IFRS 1 requires that estimates made under IFRS must be consistent
with estimates made for the same date under UK GAAP except where adjustments are
required to reflect any differences in accounting policies.


UK GAAP FINANCIAL INFORMATION

The UK GAAP financial information for the year ended 31 December 2004, presented
on pages 15 to 22, is based on the Group's full financial statements for that
year, which were prepared in accordance with UK GAAP and on the historical cost
basis. These financial statements have been filed with the Registrar of
Companies and the Australian Securities and Investment Commission.

The auditors' report on the financial statements for the year ended 31 December
2004 was unqualified and did not contain statements under section 237(2) of the
United Kingdom Companies Act (regarding adequacy of accounting records and
returns) or under section 237(3) (regarding provision of necessary information
and explanations).

The UK GAAP financial information for the period ended 30 June 2004, presented
on page 23 to 30, is based on the Group's half year report for that period,
which was prepared using accounting policies consistent with those applied in
the Group's full financial statements for the year ended 31 December 2004. This
interim financial information is unaudited.

Certain changes have been made to the presentation of the UK GAAP financial
information reported in the Group's full financial statements for the year ended
31 December 2004 and half year report for the period ended 30 June 2004, as
follows:

•   The formats of the balance sheet, profit and loss account and cash flow 
    statement have been modified to align them with the IFRS formats, to
    simplify presentation of the adjustments required to arrive at the IFRS 
    figures;

•   Turnover has been restated to gross up certain amounts charged to customers 
    for freight and handling, which previously were deducted from operating 
    costs. This has no effect on shareholders' equity, Net earnings or
    Underlying earnings;

•   The presentation of performance by business unit has been amended to reflect 
    recent changes in management responsibilities.  Rio Tinto Brasil is reported 
    as part of the Iron Ore product group and Kennecott Land is reported in
    'other operations'.  Both were previously reported as part of the Copper 
    product group.  Reflecting the new management structure implemented in 2004, 
    the results of Coal & Allied is combined with those of Rio Tinto Coal 
    Australia.  In line with its obligations as a listed company Coal & Allied 
    Industries Limited will continue to report its results separately.


PRESENTATIONAL CHANGES

Certain items previously reported as 'central items' within the financial
information by Business Units have now been allocated to the Business Units to
which they relate. This reflects the way in which this information will be
presented in the Group's first complete set of IFRS financial statements for the
year ending 31 December 2005.


ACCOUNTING POLICIES ADOPTED UNDER IFRS


a      Accounting convention

The 2004 IFRS financial information has been prepared under the historical cost
convention as modified by the revaluation of certain derivative contracts as set
out in note (p) below.


b      Basis of consolidation

The financial statements consist of the consolidation of the accounts of Rio
Tinto plc and Rio Tinto Limited (together 'the Group') and their respective
subsidiaries.

Subsidiaries:  Subsidiaries are entities over which the Group has the power to
govern the financial and operating policies in order to obtain benefits from
their activities. Control is presumed to exist where the Group owns more than
one half of the voting rights (which does not always equate to percentage
ownership) unless in exceptional circumstances it can be demonstrated that
ownership does not constitute control. Control does not exist where joint
venture partners hold veto rights over significant operating and financial
decisions. The consolidated financial statements include all the assets,
liabilities, revenues, expenses and cash flows of the parent and its
subsidiaries after eliminating intercompany balances and transactions.  For
partly owned subsidiaries, the net assets and net earnings attributable to
minority shareholders are presented as 'Outside equity shareholders' interests'
on the consolidated balance sheet and consolidated income statement.

Associates:  An associate is an entity that is neither a subsidiary nor joint
venture over whose operating and financial policies the Group exercises
significant influence.  Significant influence is presumed to exist where the
Group has between 20 per cent and 50 per cent of the voting rights, but can also
arise where the Group holds less than 20 per cent if it is actively involved and
influential in policy decisions affecting the entity. The Group's share of the
net assets, post tax results and reserves of associates are included in the
financial statements using the equity accounting method.  This involves
recording the investment initially at cost to the Group and then, in subsequent
periods, adjusting the carrying amount of the investment to reflect the Group's
share of the associate's results less any impairment of goodwill and any other
changes to the associate's net assets such as dividends.

Joint ventures: A joint venture is a contractual arrangement whereby two or more
parties undertake an economic activity that is subject to joint control. Joint
control is the contractually agreed sharing of control such that significant
operating and financial decisions require the consent of more than one venturer.
The Group has two types of joint ventures:

Jointly controlled entities ('JCEs'):  A JCE is a joint venture that involves
the establishment of a corporation, partnership or other entity in which each
venturer has a long term interest.  JCEs are accounted for using the equity
accounting method.

Jointly controlled assets ('JCAs'):  A JCA is a joint venture in which the
venturers have joint control over the assets contributed to or acquired for the
purposes of the joint venture.  JCAs do not involve the establishment of a
corporation, partnership or other entity.  This includes situations where the
participants derive benefit from the joint activity through a share of the
production, rather than by receiving a share of the results of trading.  The
Group's proportionate interest in the assets, liabilites, revenues, expenses and
cash flows of JCAs are incorporated into the Group's financial statements under
the appropriate headings.

Acquisitions and disposals:  The results of businesses acquired during the year
are brought into the consolidated financial statements from the date of
acquisition; the results of businesses sold during the year are included in the
consolidated financial statements for the period up to the date of disposal.
Gains or losses on disposal are calculated as the difference between the sale
proceeds (net of expenses) and the net assets attributable to the interest which
has been sold. Where a disposal represents a separate major line of business or
geographical area of operations, the net results attributable to the disposal
are shown separately.


c      Turnover

Turnover comprises sales to third parties at invoiced amounts, with most sales
being priced ex works, free on board (f.o.b.) or cost, insurance and freight
(c.i.f.). Amounts billed to customers in respect of shipping and handling are
classed as turnover where the Group is responsible for carriage, insurance and
freight. All shipping and handling costs incurred by the Group are recognised as
operating costs. If the Group is acting solely as an agent, amounts billed to
customers are offset against the relevant costs.

Turnover excludes any applicable sales taxes. Mining royalties are presented as
an operating cost.  Gross turnover shown in the income statement includes the
Group's share of the turnover of equity accounted JCEs and associates.
By-product revenues are included in turnover.

A large proportion of Group production is sold under medium to long term
contracts, but turnover is only recognised on individual sales when persuasive
evidence exists indicating that all of the following criteria are met:

   -   the significant risks and rewards of ownership of the product have
       been transferred to the buyer;

   -   neither continuing managerial involvement to the degree usually
       associated with ownership nor effective control over the goods sold 
       has been retained;

   -   the amount of revenue can be measured reliably;

   -   it is probable that the economic benefits associated with the sale
       will flow to the Group;

   -   the costs incurred or to be incurred in respect of the sale can be
       measured reliably.

These conditions are generally satisfied when title passes to the customer.  In
most instances turnover is recognised when the product is delivered to the
destination specified by the customer, which is typically the vessel on which it
will be shipped, the destination port or the customer's premises.

The turnover from sales of many products is subject to adjustment based on an
inspection of the product by the customer.  In such cases, turnover is initially
recognised  on a provisional  basis using the Group's  best estimate of
contained metal.  Any subsequent adjustments to the initial estimate of metal
content are recorded in turnover once they have been determined.

Certain products are 'provisionally priced', i.e. the selling price is subject
to final adjustment at the end of a period normally ranging from 30 to 180 days
after delivery to the customer, based on the market price at the relevant
quotation point stipulated in the contract.  Turnover is initially recognised
when the conditions set out above have been met, using market prices at that
date.  At each reporting date the provisionally priced metal is marked to
market, with adjustments recorded in turnover, based on the forward selling
price for the quotational  period stipulated in the contract until the
quotational period expires.  For this purpose, the selling price can be measured
reliably for those products, such as copper, for which there exists an active
and freely traded commodity market such as the London Metals Exchange and the
value of product sold by the Group is directly linked to the form in which it is
traded on that market.


d      Currency translation

The functional currency for each entity in the Group is determined as the
currency of the primary economic environment in which it operates. For most
entities, this is the local currency of the country in which it operates.
Transactions other than those in the functional currency of the entity are
translated at the exchange rate ruling at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies are retranslated at
year end exchange rates.

On consolidation, income statement items are translated into US dollars, which
is the Group's presentation currency, at average rates of exchange. Balance
sheet items are translated into US dollars at year end exchange rates. Exchange
differences on the translation of the net assets of entities with functional
currencies other than the US dollar, and any offsetting exchange differences on
net debt hedging those net assets, are dealt with through reserves.

Exchange gains and losses which arise on balances between Group entities are
taken to reserves where that balance is, in substance, part of a parent's net
investment in its subsidiary.

The Group finances its operations primarily in US dollars and a substantial part
of the Group's US dollar debt is located in subsidiaries having functional
currencies other than the US dollar. Except as noted above, exchange gains and
losses relating to such US dollar debt are charged or credited to the Group's
income statement in the year in which they arise. This means that the impact of
financing in US dollars on the Group's income statement is dependent on the
functional currency of the particular subsidiary where the debt is located.

Except as noted above, or in note (p) below relating to derivative contracts,
all exchange differences are charged or credited to the income statement in the
year in which they arise.


e      Goodwill and intangible assets

Goodwill represents the difference between the cost of acquisition and the fair
value of the identifiable net assets acquired. Goodwill on acquisition of
subsidiaries and JCAs is separately disclosed and goodwill on acquisitions of
associates and JCEs is included within investments in equity accounted entities.


In 1997 and previous years goodwill was eliminated against reserves in the year
of acquisition as a matter of accounting policy, as was then permitted under UK
GAAP. Such goodwill was not reinstated under subsequent UK accounting standards
or on transition to IFRS. Goodwill on the Group's opening IFRS balance sheet in
respect of acquisitions prior to 1 January 2004 is therefore stated at its
carrying amount on that date under UK GAAP.

Goodwill is not amortised; rather it is tested annually for impairment and,
under IFRS 1, was reviewed for impairment at the transition date. Goodwill is
allocated to the cash generating unit or group of cash generating units expected
to benefit from the related business combination for the purposes of impairment
testing.

Finite life intangible assets are amortised over their useful economic lives on
a straight line or units of production basis as appropriate.


f      Exploration and evaluation

The Group has continued its UK GAAP policy for the recognition and measurement
of exploration and evaluation expenditure, in accordance with IFRS 6
'Exploration for and Evaluation of Mineral Resources'.

Exploration and evaluation expenditure comprises costs which are directly
attributable to:

   -   researching and analysing existing exploration data;

   -   conducting geological studies, exploratory drilling and sampling;

   -   examining and testing extraction and treatment methods; and

   -   compiling pre-feasibility and feasibility studies.

Exploration and evaluation expenditure also includes the costs incurred in
acquiring mineral rights, the entry premiums paid to gain access to areas of
interest and amounts payable to third parties to acquire interests in existing
projects.

Capitalisation of exploration expenditure commences on acquisition of a
beneficial interest or option in mineral rights. Capitalised exploration
expenditure is reviewed for impairment at each balance sheet date. Full
provision is made for impairment unless there is a high degree of confidence in
the projects viability.  If a project does not prove viable, all irrecoverable
costs associated with the project and the related impairment provisions are
written off.

When it is decided to proceed with development, any impairment provisions raised
in previous years are reversed to the extent that the relevant costs are
expected to be recovered. If the project proceeds to development, the amounts
included within intangible assets are transferred to property, plant and
equipment.


g      Property, plant and equipment

The cost of property, plant and equipment comprises its purchase price and any
costs directly attributable to bringing the asset to the location and condition
necessary for it to be capable of operating in the manner intended by
management. Once a mining project has been established as commercially viable,
expenditure other than that on land, buildings, plant and equipment is
capitalised under 'Mining properties and leases' together with any amount
transferred from 'Exploration and evaluation'.  This includes costs incurred in
preparing the site for mining operations, including stripping costs (see below).
Costs associated with commissioning new assets, in the period before they are 
capable of operating in the manner intended by management, are capitalised. 
Development costs incurred after the commencement of production are capitalised 
to the extent they give rise to a future economic benefit.  Interest on 
borrowings related to construction or development projects is capitalised
until the point when substantially all the activities that are necessary to 
make the asset ready for its intended use are complete.


h      Mining properties and leases

As noted above, stripping (ie overburden and other waste removal) costs incurred
in the development of a mine before production commences are capitalised as part
of the cost of constructing the mine and subsequently amortised over the life of
the operation. These may relate to a discrete section of the ore body, for
example.

The Group defers stripping costs incurred subsequently, during the production
stage of its operations, for those operations where this is the most appropriate
basis for matching the costs against the related economic benefits. This is
generally the case where there are fluctuations in stripping costs over the life
of the mine, and the effect is material.  Deferred stripping costs are presented
within 'Mining properties and leases'. The amount of stripping costs deferred is
based on the ratio ('Ratio') obtained by dividing the tonnage of waste mined
either by the quantity of ore mined or by the quantity of minerals contained in
the ore.  Stripping costs incurred in the period are deferred to the extent that
the current period Ratio exceeds the life of mine Ratio.  Such deferred costs
are then charged against reported profits to the extent that, in subsequent
periods, the Ratio falls short of the life of mine Ratio.  The life of mine
Ratio is based on proven and probable reserves of the operation.

In some operations, there are distinct periods of new development during the
production stage of the mine.  The new development will be characterised by a
major departure from the life of mine stripping Ratio. Excess stripping costs
during such periods are deferred and charged against reported profits in
subsequent periods on a units of production basis.

If the Group were to expense production stage stripping costs as incurred, there
would be greater volatility in the year to year results from operations and
excess stripping costs would be expensed at an earlier stage of a mine's
operation.

Deferred stripping costs form part of the total investment in the relevant cash
generating unit, which is reviewed for impairment if events or changes in
circumstances indicate that the carrying value may not be recoverable.

Amortisation of deferred stripping costs is included in depreciation of
'Property, plant and equipment' or in the Group's share of the results of its
equity accounted operations, as appropriate.  Changes to the life of mine
stripping Ratio are accounted for prospectively.


i      Depreciation and impairment

Property, plant and equipment is depreciated over its useful life, or over the
remaining life of the mine if shorter. The major categories of property, plant
and equipment are depreciated on a units of production and/or straight-line
basis as follows:


Units of production basis

For mining properties and leases and certain mining equipment, the economic
benefits from the asset are consumed in a pattern which is linked to the
production level. Except as noted below, such assets are depreciated on a units
of production basis.


Straight line basis

Assets within operations for which production is not expected to fluctuate
significantly from one year to another or which have a physical life shorter
than the related mine are depreciated on a straight line basis as follows:


Buildings                                               10 to 40 years
Plant and equipment                                     3 to 35 years
Land                                                    Not depreciated


Residual values and useful lives are reviewed, and adjusted if appropriate, at
each balance sheet date. Changes to the estimated residual values or useful
lives are accounted for prospectively. In applying the units of production
method, depreciation is normally calculated using the quantity of material
extracted from the mine in the period as a percentage of the total quantity of
material to be extracted in current and future periods based on proven and
probable reserves (and, for some mines, mineral resources). Development costs
that relate to a discrete section of an ore body and which only provide benefit
over the life of those reserves, are depreciated over the estimated life of that
discrete section. Development costs incurred which benefit the entire ore body
are depreciated over the estimated life of the ore body.

Property, plant and equipment and finite life intangible assets are reviewed for
impairment if there is any indication that the carrying amount may not be
recoverable.  This applies to the Group's share of the assets held by associates
and joint ventures as well as the assets held by the Group itself.

When a review for impairment is conducted, the recoverable amount is assessed by
reference to the higher of 'value in use' (being the net present value of
expected future cash flows of the relevant cash generating unit) or 'fair value
less costs to sell'.   Where there is no binding sale agreement or active
market, fair value less costs to sell is based on the best information available
to reflect the amount the Group could receive for the cash generating unit in an
arm's length transaction. Future cash flows are based on:

   -   estimates of the quantities of the reserves and mineral resources for
       which there is a high degree of confidence of economic extraction;

   -   future production levels;

   -   future commodity prices (assuming the current market prices will
       revert to the Group's assessment of the long term average price, 
       generally over a period of three to five years); and

   -   future cash costs of production, capital expenditure, close down,
       restoration and environmental clean up.

IAS 36 'Impairment of assets' includes a number of restrictions on the future
cash flows that can be recognised in respect of future restructurings and
improvement related capital expenditure.  When calculating 'value in use', it
also requires that calculations should be based on exchange rates current at the
time of the assessment.

For operations with a functional currency other than the US dollar, the
impairment review is undertaken in the relevant functional currency. These
estimates are based on detailed mine plans and operating budgets, modified as
appropriate to meet the requirements of IAS 36.

The discount rate applied is based upon the Group's weighted average cost of
capital with appropriate adjustment for the risks associated with the relevant
cash flows, to the extent that such risks are not reflected in the forecast cash
flows.


j      Determination of ore reserves

The Group estimates its ore reserves and mineral resources based on information
compiled by Competent Persons as defined in accordance with the Australasian
Code for Reporting of Mineral Resources and Ore Reserves of December 2004 (the
JORC code). Reserves, and for certain mines resources, determined in this way
are used in the calculation of depreciation, amortisation and impairment
charges, the assessment of life of mine stripping ratios and for forecasting the
timing of the payment of close down and restoration costs.

In assessing the life of a mine for accounting purposes, mineral resources are
only taken into account where there is a high degree of confidence of economic
extraction.


k      Provisions for close down and restoration and for environmental clean up 
       costs

Close down and restoration costs include the dismantling and demolition of
infrastructure and the removal of residual materials and remediation of
disturbed areas.  Close down and restoration costs are provided for in the
accounting period when the obligation arising from the related disturbance
occurs, whether this occurs during the mine development or during the production
phase, based on the net present value of estimated future costs.  Provisions for
close down and restoration costs do not include any additional obligations which
are expected to arise from future disturbance. The costs are estimated on the
basis of a closure plan.  The cost estimates are calculated annually during the
life of the operation to reflect known developments and are subject to formal
review at regular intervals.

The amortisation or 'unwinding' of the discount applied in establishing the net
present value of provisions is charged to the income statement in each
accounting period.  The amortisation of the discount is shown as a financing
cost, rather than as an operating cost. Other movements in the provisions for
close down and restoration costs, including those resulting from new
disturbance, updated cost estimates, changes to the lives of operations and
revisions to discount rates are capitalised within property, plant and
equipment.  These costs are then depreciated over the lives of the assets to
which they relate.

Where rehabilitation is conducted systematically over the life of the operation,
rather than at the time of closure, provision is made for the outstanding
continuous rehabilitation work at each balance sheet date.  All other costs of
continuous rehabilitation are charged to the income statement as incurred.

Provision is made for the estimated present value of the costs of environmental
clean up obligations outstanding at the balance sheet date. These costs are
charged to the income statement.  Movements in the environmental clean up
provisions are presented as an operating cost, except for the unwind of the
discount which is shown as a financing cost.


l      Inventories

Inventories are valued at the lower of cost and net realisable value on a first
in, first out ('FIFO') basis. Cost for raw materials and stores is purchase
price and for partly processed and saleable products is generally the cost of
production, including the appropriate proportion of depreciation and overheads.
For this purpose the costs of production include:

   -  labour costs, materials and contractor expenses which are directly
      attributable to the extraction and processing of ore;

   -  the depreciation of mining properties and leases and of property,
      plant and equipment used in the extraction and processing of ore; and

   -  production overheads.


Stockpiles represent ore that has been extracted and is available for further
processing.  If there is significant uncertainty as to when the stockpiled ore
will be processed it is expensed as incurred.  Where the future processing of
this ore can be predicted with confidence because it exceeds the mine's cut off
grade, it is valued at the lower of cost and net realisable value.  If the ore
will not be processed within the 12 months after the balance sheet date it is
included within non-current assets. Work in progress inventory includes ore
stockpiles and other partly processed material.  Quantities are assessed
primarily through surveys and assays.


m      Deferred tax

Full provision is made for deferred taxation on all temporary differences
existing at the balance sheet date with certain limited exceptions. Temporary
differences are the difference between the carrying value of an asset or
liability and its tax base. The main exceptions to this principle are as
follows:

   -   tax payable on the future remittance of the past earnings of 
       subsidiaries, associates and joint ventures is provided for except 
       where Rio Tinto is able to control the remittance of profits and it 
       is probable that there will be no remittance in the foreseeable future;

   -   deferred tax is not provided on the initial recognition of an asset
       or liability in a transaction that does not affect accounting profit 
       or taxable profit and is not a business combination. Furthermore, 
       deferred tax is not recognised on subsequent changes in the carrying 
       value of such assets and liabilities, for example where they are 
       depreciated; and

   -   deferred tax assets are recognised only to the extent that it is more
       likely than not that they will be recovered.


n      Employee benefits

For defined benefit post-employment plans, the difference between the fair value
of the plan assets (if any) and the present value of the plan liabilities is
recognised as an asset or liability on the balance sheet.  Actuarial gains and
losses arising in the year are taken to the Statement of Recognised Income and
Expense. For this purpose, actuarial gains and losses comprise both the effects
of changes in actuarial assumptions and experience adjustments arising because
of differences between the previous actuarial assumptions and what has actually
occurred.

Other movements in the net surplus or deficit are recognised in the income
statement, including the current service cost, any past service cost and the
effect of any curtailment or settlements. The interest cost less the expected
return on assets is also charged to the income statement. The amount charged to
the income statement in respect of these plans is included within operating
costs or in the Group's share of the results of equity accounted operations as
appropriate.

The values attributed to plan liabilities are assessed in accordance with the
advice of independent qualified actuaries.

The Group's contributions to defined contribution pension plans are charged to
the income statement in the period to which the contributions relate.


o      Cash and cash equivalents

Cash and cash equivalents are carried in the balance sheet at cost. Cash and
cash equivalents comprise cash on hand, deposits held on call with banks,
short-term, highly liquid investments that are readily convertible into known
amounts of cash and which are subject to insignificant risk of changes in value,
and bank overdrafts which are repayable on demand.


p      Financial instruments

The Group's policy with regard to 'Treasury management and financial
instruments' is set out in the Financial Review on page 35 of the Group's 2004
Annual Report and financial statements. When the Group enters into derivative
contracts these transactions are designed to reduce exposures related to assets
and liabilities, firm commitments or anticipated transactions.

Derivative contracts held by the Group are accounted for as follows:

   -  Amounts receivable and payable in respect of interest rate swaps are
      recognised as adjustments to net interest over the life of the contract.

   -  Derivative contracts which have been entered into by the Group in
      respect of its firm commitments or anticipated transactions, in order to 
      hedge its exposure to fluctuations in exchange rates against the US 
      dollar, and which are located in the entity with the exposure, are 
      accounted for as hedges: gains and losses are deferred and subsequently 
      recognised when the hedged transaction occurs. Where such contracts are 
      not located in the entity with the exposure they are marked to market at 
      the balance sheet date giving rise to charges or credits to the income 
      statement in periods before the transaction against which the derivative 
      is held as an economic hedge is recognised.

   -  Gains or losses on foreign currency forward contracts and currency
      swaps relating to financial assets and liabilities are matched against the
      losses or gains on the hedged items in the income statement. Where 
      currency swaps are held with different counterparties to the underlying 
      borrowing the fair value of the swaps is shown separately in the balance 
      sheet as there is no legal right of offset.

The Group has certain quoted investments in companies which are not
subsidiaries, associates or joint ventures which are held for the long term.
These investments are accounted for at cost less provisions for diminution in
value.


q      Share based payments

Most of the Group's share based payment plans are settled by the issue of shares
by the relevant parent company. The fair value of the share plans is recognised
as an expense over the expected vesting period. The fair value of the share
plans is determined at the date of grant, taking into account any market based
vesting conditions attached to the award (e.g. Total Shareholder Return). When
market prices are not available, the Group uses fair values provided by
independent actuaries based on an actuarial binomial model.

Non-market based vesting conditions (e.g. earnings per share targets) are taken
into account in estimating the number of awards likely to vest. The estimate of
the number of awards likely to vest is reviewed at each balance sheet date up to
the vesting date, at which point the estimate is adjusted to reflect the actual
awards issued. No adjustment is made after the vesting date even if the awards
are forfeited or not exercised.



Group income statement
Year ended 31 December 2004
                                                                      UK GAAP (a)   Adjustments         IFRS
                                                                             US$m          US$m         US$m

Gross turnover (including share of jointly controlled entities and         14,608          (78)       14,530
associates)

Share of jointly controlled entities' and associates' turnover            (2,809)         1,233      (1,576)

Consolidated turnover                                                      11,799         1,155       12,954
Operating costs (excluding impairment charges)                            (9,519)         (730)     (10,249)
Impairment charges (b)                                                      (558)             -        (558)
Profit on disposal of businesses and investments                              920           260        1,180

Operating profit                                                            2,642           685        3,327
Share of profit after tax of jointly controlled entities and associates       814         (291)          523

Profit before finance costs and taxation                                    3,456           394        3,850

Finance items
Exchange gains on external debt and intragroup balances                         -           119          119
Gains on derivatives not qualifying for hedge accounting                        -            16           16
Net interest payable and similar charges                                    (113)           (7)        (120)
Amortisation of discount related to provisions                              (100)            13         (87)
                                                                            (213)           141         (72)
Profit before taxation                                                      3,243           535        3,778

Taxation                                                                    (488)         (125)        (613)

Profit for the year                                                         2,755           410        3,165
Attributable to outside equity shareholders                                    58           (5)           53
Attributable to equity shareholders of Rio Tinto (Net earnings)             2,813           405        3,218


Basic earnings per ordinary share                                          204.0c         29.3c       233.3c
Diluted earnings per ordinary share                                        203.6c         29.3c       232.9c



(a)     For an explanation of the basis of UK GAAP figures in this document, 
        see 'UK GAAP financial information' on page 10.

(b)     Under both UK GAAP and IFRS, the tax credit attributable to impairment
        charges is US$108 million, and the net charge attributable to outside 
        equity shareholders is US$129 million.

(c)     The results relate wholly to continuing operations.



Group cash flow statement
Year ended 31 December 2004
                                                                          UK GAAP   Adjustments        IFRS
                                                                             US$m          US$m        US$m

Cash flow from subsidiary operations                                        3,621           353       3,974

Dividends from jointly controlled entities and associates                     828         (350)         478

Cash flow from operations                                                   4,449             3       4,452

Interest received                                                              23             5          28
Interest paid                                                               (168)          (11)       (179)
Dividends paid to outside shareholders                                       (61)             5        (56)
Tax paid                                                                    (875)            10       (865)

Cash flow from operating activities                                         3,368            12       3,380


Cash flow from investing activities

Disposals less acquisitions of subsidiaries, joint ventures & associates    1,511           (4)       1,507
Purchase of property, plant & equipment and intangible assets             (2,164)          (92)     (2,256)
Funding of Group share of jointly controlled entities' and
associates' capital expenditure                                              (33)            33           -
Other funding of jointly controlled entities and associates                    15           (6)           9
Exploration and evaluation expenditure                                      (193)             3       (190)
Proceeds from sale of property, plant and equipment and intangible assets      40             1          41
Sales less purchases of other investments                                     250          (19)         231
Cash flows relating to derivatives                                              -            77          77

Cash used in investing activities                                           (574)           (7)       (581)


Cash flow before financing activities                                       2,794             5       2,799

Cash flow from subsidiary operations
Equity dividends paid to Rio Tinto shareholders                             (906)             -       (906)
Net proceeds from issue of ordinary shares in Rio Tinto                        26             -          26
Net proceeds from issue of ordinary shares in subsidiaries to outside
shareholders                                                                    7             -           7
Finance lease principal payments                                                -          (20)        (20)
Net proceeds from issue of new borrowings                                     205             1         206
Repayment of borrowings                                                   (2,038)           (3)     (2,041)
Cash flow relating to liquid resources not classified as cash and
cash equivalents                                                               90          (67)          23
                                                                              
Cash used in financing activities                                         (2,616)          (89)     (2,705)

Increase in cash and cash equivalents                                         178          (84)          94


Cash flow from operations

Profit for the year                                                         2,755           410       3,165
Taxation                                                                      488           125         613
Net interest payable and amortisation of discount                             213           (6)         207
Share of profit after tax of jointly controlled entities and associates     (814)           291       (523)
Profit on disposals of interests in businesses                              (920)         (260)     (1,180)
Depreciation and amortisation                                               1,204          (33)       1,171
Charge for impairment                                                         558             -         558
Exploration and evaluation charged against profit                             187             3         190
Provisions                                                                    147            45         192
Utilisation of provisions                                                   (186)          (34)       (220)
Change in inventories                                                       (179)          (38)       (217)
Change in trade and other receivables                                        (48)          (49)        (97)
Change in trade and other payables                                            168            66         234
Gains on derivatives not qualifying as hedges under IFRS                        -          (16)        (16)
Exchange gains on external debt and intragroup balances                         -         (119)       (119)
Other items                                                                    48          (32)          16

                                                                            3,621           353       3,974



Group balance sheet
At 31 December 2004
                                                                            UK GAAP    Adjustments      IFRS
                                                                             US$m         US$m          US$m

Non-current assets

Goodwill                                                                    1,139          (64)        1,075
Intangible assets                                                              97            92          189
Property, plant and equipment                                              16,605           116       16,721
Investments in jointly controlled entities and associates                   2,513         (497)        2,016
Loans to jointly controlled entities                                          130             -          130
Inventories                                                                    38            30           68
Trade and other receivables                                                   656           114          770
Deferred tax assets                                                            42            10           52
Tax recoverable                                                               138          (13)          125
Derivatives related to net debt                                                 -           494          494
Other financial assets                                                        138           137          275

                                                                           21,496           419       21,915


Current assets

Inventories                                                                 1,988          (36)        1,952
Loans to jointly controlled entities                                           36            10           46
Trade and other receivables                                                 1,690           142        1,832
Tax recoverable                                                                33           (4)           29
Derivatives related to net debt                                                 -            29           29
Other financial assets                                                         76            23           99
Other liquid resources                                                          2            12           14
Cash and cash equivalents                                                     390             2          392
                                                                            4,215           178        4,393


Current liabilities

Bank overdrafts repayable on demand                                          (68)             2         (66)
Borrowings                                                                  (738)          (51)        (789)
Trade and other payables                                                  (2,400)           647      (1,753)
Tax payable                                                                 (189)            47        (142)
Provisions                                                                  (199)             6        (193)
                                                                          (3,594)           651      (2,943)

Net current assets                                                            621           829        1,450


Non-current liabilities

Borrowings                                                                (3,337)         (546)      (3,883)
Trade and other payables                                                    (338)         (572)        (910)
Tax payable                                                                  (63)          (24)         (87)
Deferred tax liabilities                                                  (1,407)         (728)      (2,135)
Provisions                                                                (3,452)         (307)      (3,759)
                                                                          (8,597)       (2,177)     (10,774)

Net assets                                                                 13,520         (929)       12,591


Capital and reserves

Share capital
- Rio Tinto plc                                                               155            17          172
- Rio Tinto Limited (excl. Rio Tinto plc interest)                          1,133             -        1,133
Share premium account                                                       1,650           172        1,822
Other reserves                                                                326           106          432
Profit and loss account                                                     9,320       (1,002)        8,318

Total shareholders' equity                                                 12,584         (707)       11,877

Attributable to outside equity shareholders                                   936         (222)          714

Total equity                                                               13,520         (929)       12,591




Group statement of recognised income and expense under IFRS
Year ended 31 December 2004
                                                                       Attributable     Outside       Total
                                                                             to the   interests
                                                                            parents
                                                                               US$m        US$m        US$m

Profit for the year                                                           3,218        (53)       3,165
Actuarial losses on post retirement benefit plans                             (129)        (24)       (153)

Total recognised income for the period                                        3,089        (77)       3,012



Statement of changes in equity under IFRS
Year ended 31 December 2004
                                                                             Equity     Outside       Total
                                                                       attributable   interests      equity
                                                                             to the
                                                                            parents
                                                                               US$m        US$m        US$m

Balance at 1 January 2004                                                     9,200         823      10,023

Currency translation adjustment                                                 445          44         489
Total recognised income for the period                                        3,089        (77)       3,012
Employee share options charged to income statement                               27           -          27
Dividends                                                                     (910)        (56)       (966)
Subsidiaries disposed of                                                          -        (27)        (27)
Ordinary shares issued                                                           26           7          33

Balance at 31 December 2004                                                  11,877         714      12,591



Reconciliation of net earnings to Underlying earnings under IFRS


                                                                Pre-tax    Taxation     Outside        Net
                                                                                      interests     amount
Adjustments                                                                                           US$m

Gains/(losses) relating to disposals of:
- Subsidiaries                                                      207         (9)           4        202
- Joint ventures                                                     61           -           -         61
- Associates                                                        778           -           -        778
- Other investments and undeveloped properties                      134           -           -        134

                                                                  1,180         (9)           4      1,175
Impairment charges
- Palabora                                                        (398)         108         129      (161)
- Colowyo                                                         (160)           -           -      (160)

                                                                  (558)         108         129      (321)

Exchange differences and derivatives
- Exchange gains on external US$ debt and intragroup balances       119        (28)        (11)         80
- Gains on derivatives not qualifying for hedge accounting           16         (8)           -          8
- Exchange differences and non-qualifying derivatives in
  jointly  controlled entities and associates (net of tax)            4           -           -          4

                                                                    139        (36)        (11)         92

Total excluded from Underlying earnings                             761          63         122        946

Net earnings                                                      3,778       (613)          53      3,218

Underlying earnings                                               3,017       (676)        (69)      2,272



This alternative measure of earnings is reported by Rio Tinto to provide greater
understanding of the underlying business performance of its operations. The
items to be excluded from Net earnings in arriving at 'Underlying earnings' are
as follows:

   -   Gains and losses arising on the disposal of interests in businesses
       and undeveloped properties

   -   Charges and credits relating to impairment of non-current assets,
       excluding those related to current year exploration expenditure

   -   Exchange gains and losses on US dollar debt and intragroup balances

   -   Valuation changes on currency and interest rate derivatives which are
       ineligible for hedge accounting, other than those embedded in commercial
       contracts

   -   The currency revaluation of embedded US dollar derivatives contained
       in contracts held by entities whose functional currency is not the 
       US dollar

   -   Other credits and charges that individually, or in aggregate if of a
       similar type, are of a nature and size to require exclusion in order to 
       provide additional insight into underlying business performance.



Prima facie tax reconciliation under IFRS
Year ended 31 December 2004
                                                                                                      IFRS
                                                                                                      US$m

Profit before taxation                                                                               3,778
Deduct: share of net profit of jointly controlled entities and associates                            (523)

Parent companies' and subsidiaries' profit before tax                                                3,255

Prima facie tax payable at UK and Australian rate of 30%                                               977

Impact of items excluded from Underlying earnings                                                    (290)

Permanent differences relating to:
Other tax rates applicable outside the UK and Australia                                               (33)
Resource depletion and other depreciation allowances                                                  (25)
Research, development and other investment allowances                                                  (7)
Exchange differences relating to deferred tax balances                                                (12)
Other                                                                                                    3

                                                                                                      (74)

Total taxation charge for the year ended 31 December 2004                                              613





Consolidated net debt under IFRS
At 31 December 2004

                                                                 Cash and       Other   Borrowings    Net debt
                                                                     cash      liquid
                                                              equivalents   resources                     US$m

Analysis of changes in consolidated net debt

At 1 January                                                          241          34      (5,985)     (5,710)
Adjustment on currency translation                                    (7)           3        (199)       (203)
Exchange gains/(losses) charged to the income statement               (2)           -          163         161
Exchange gains/(losses) taken through reserves                          -           -            5           5
Company no longer consolidated                                          -           -           12          12
Finance lease principal repayments                                      -           -           20          20
Per cash flow statement                                                94        (23)        1,835       1,906

Net debt at 31 December                                               326          14      (4,149)     (3,809)



                                                Derivatives      Cash and       Other   Borrowings    Net debt
                                             related to net          cash      liquid
                                                       debt   equivalents   resources                     US$m

Reconciliation to balance sheet categories
Non-current                                             494             -           -      (3,883)     (3,389)
Current                                                  29           392          14        (789)       (354)
Bank overdrafts repayable on demand                       -             -           -         (66)        (66)

Total per balance sheet                                 523           392          14      (4,738)     (3,809)
Reallocations                                         (523)          (66)           -          589           -

Net debt per above                                        -           326          14      (4,149)     (3,809)

                                                                                                          US$m
Reconciliation to UK GAAP net debt
Net debt reported under UK GAAP                                                                        (3,751)
Effect of reclassification of subsidiaries and joint ventures                                             (58)

Net debt reported under IFRS                                                                           (3,809)





Product analysis
Year ended 31 December 2004

     IFRS                                        UK GAAP   Adjustments     IFRS
        %                                           US$m          US$m     US$m

              Gross turnover
    15.4      Copper                               2,233             -    2,233
     4.4      Gold (all sources)                     634             -      634
    20.2      Iron ore                             2,932           (1)    2,931
    18.6      Coal                                 2,665            44    2,709
    16.0      Aluminium                            2,441         (121)    2,320
    15.0      Industrial minerals                  2,175            -     2,175
     5.1      Diamonds                               744            -       744
     5.3      Other products                         784            -       784

    100.0                                         14,608         (78)    14,530


              Net earnings
    32.6      Copper, gold and by-products           861            1       862
    21.4      Iron ore                               569          (4)       565
    15.7      Coal                                   350           66       416
    12.5      Aluminium                              334          (3)       331
     9.7      Industrial minerals                    236           20       256
     7.1      Diamonds                               169           19       188
     1.0      Other products                          25            -        25

    100.0                                          2,544           99     2,643

              Exploration and evaluation           (152)           24     (128)
              Net interest                          (57)         (12)      (69)
              Other items                          (114)         (60)     (174)

              Underlying earnings                  2,221           51     2,272
              Items excluded from Underlying         592          354       946
              earnings

              Net earnings                         2,813          405     3,218



Geographical analysis (by country of origin)
Year ended 31 December 2004

     IFRS                                        UK GAAP  Adjustments      IFRS
        %                                           US$m         US$m      US$m

              Gross turnover
    31.5      North America                        4,553           18     4,571
    48.3      Australia and New Zealand            7,000           23     7,023
     7.8      South America                        1,131            -     1,131
     5.8      Africa                                 850            -       850
     2.2      Indonesia                              314            -       314
     4.4      Europe and other countries             760        (119)       641

    100.0                                         14,608         (78)    14,530

              Net earnings
    35.4      North America                          730           99       829
    48.3      Australia and New Zealand            1,109           21     1,130
    15.5      South America                          382         (18)       364
     0.1      Africa                                  15         (13)         2
     1.9      Indonesia                               48          (4)        44
    (1.2)     Europe and other countries             (6)         (22)      (28)

    100.0                                          2,278           63     2,341

              Net interest                          (57)         (12)      (69)

              Underlying earnings                  2,221           51     2,272
              Items excluded from Underlying         592          354       946
              earnings

              Net earnings                         2,813          405     3,218



The above analyses include Rio Tinto's share of the results of jointly
controlled entities and associates including interest.

The amortisation of discount is included in the applicable product category and
geographical area.  Other financing costs of subsidiaries are included in 'Net
interest'.



Rio Tinto financial information by business unit
Year ended 31 December 2004

                                              Gross turnover (a)        EBITDA (b)          Net earnings (c)
                                   Rio Tinto
                                    interest      UK GAAP    IFRS        UK GAAP     IFRS       UK GAAP   IFRS
                                           %         US$m    US$m           US$m     US$m          US$m   US$m


Iron Ore

Hamersley (inc. HIsmelt(R))            100.0        1,858   1,858            800      772           447    430
Robe River                              53.0          614     614            325      318           119    130
Iron Ore Company of Canada              58.7          428     428             55       55             3      4
Rio Tinto Brasil                       100.0          109     109             31       31             1      1

                                                    3,009   3,009          1,211    1,176           570    565


Energy

Kennecott Energy                       100.0        1,107   1,125            277      298           119    180
Rio Tinto Coal Australia               100.0        1,559   1,585            540      536           231    236
Rossing                                 68.6          124     124              8        8           (4)    (4)
Energy Resources of Australia           68.4          174     174             70       70            19     19

                                                    2,964   3,008            895      912           365    431

Industrial Minerals                                 2,126   2,126            538      554           223    243

Aluminium                                (d)        2,478   2,356            720      688           334    331


Copper

Kennecott Utah Copper                  100.0        1,091   1,091            498      498           294    311
Escondida                               30.0        1,003   1,003            699      699           416    406
Freeport                                               43      43              7        7           (4)    (4)
Grasberg joint venture                  40.0          159     159            102       98            38     32
Palabora                                49.2          305     305           (20)     (20)          (21)   (21)
Kennecott Minerals                     100.0          263     263            129      130            79     82
Other Copper                                          169     169             91       91            54     54

                                                    3,033   3,033          1,506    1,503           856    860


Diamonds

Argyle                                 100.0          322     322            102      102            23     40
Diavik                                  60.0          420     420            316      316           145    147
Murowa                                  78.0            2       2              1        1             1      1
                                                      744     744            419      419           169    188

Other Operations                                      167     167             81       81            27     25

Product Group Total                                14,521  14,443          5,370    5,333         2,544  2,643

Other items                                            87      87          (221)    (250)         (114)  (174)
Exploration and evaluation                                                 (187)    (142)         (152)  (128)
Net interest                                                                                       (57)   (69)

Underlying earnings                                                        4,962    4,941         2,221  2,272

Items excluded from Underlying earnings                                      771    1,170           592    946

Total                                              14,608  14,530          5,733    6,111         2,813  3,218

Depreciation & amortisation in subsidiaries                              (1,204)  (1,171)
Impairment charges                                                         (408)    (548)
Depreciation & amortisation in jointly
controlled entities and associates                                         (271)    (228)
Taxation and finance items in jointly
controlled entities and associates                                         (394)    (314)

Profit before finance costs and tax                                        3,456    3,850



(a)   Gross turnover includes 100 per cent of subsidiaries' turnover and the
      Group's share of the turnover of jointly controlled entities and 
      associates. UK GAAP turnover has been restated to gross up certain 
      amounts charged to customers for freight and handling, which previously 
      were deducted from operating costs.

(b)   EBITDA of subsidiaries, jointly controlled entities and associates
      represents profit before: tax, net finance items, depreciation and 
      amortisation.

(c)   Net earnings represent profit after tax attributable to the Rio Tinto
      Group.  Earnings of subsidiaries are stated before finance items but after 
      the amortisation of the discount related to provisions.  Earnings 
      attributable to jointly controlled entities and associates include 
      interest charges and amortisation of discount, but exclude movements 
      relating to foreign exchange on net debt, and the impact of fair value 
      adjustments to derivatives not qualifying for hedge accounting under IFRS.  
      Business unit net earnings exclude items that are not included in the 
      Group's definition of Underlying earnings.

(d)   Includes Rio Tinto's interest in Anglesey Aluminium (51 per cent) and
      Comalco (100 per cent).

(e)   Business units have been classified above according to the Group's
      management structure.  Generally, this structure has regard to the primary
      product of each business unit but there are exceptions.  For example, the 
      Copper group includes certain gold operations.  This summary differs, 
      therefore, from the Product analysis in which the contributions of 
      individual business units are attributed to several products as 
      appropriate.

(f)   Certain items previously reported as central items have been allocated
      to the Business Units to which they relate.  This reflects the way in 
      which this information will be presented in the Group's first complete 
      set of IFRS financial statements for the year ending 31 December 2005.



Rio Tinto financial information by business unit (continued)
Year ended 31 December 2004
                                               Capital expenditure      Depreciation &     Operating assets (i)
                                                       (g)             amortisation (h)            
                                     Rio Tinto
                                      interest     UK GAAP     IFRS      UK GAAP     IFRS    UK GAAP     IFRS
                                             %        US$m     US$m         US$m     US$m       US$m     US$m

Iron Ore

Hamersley (inc. HIsmelt(R))              100.0         745      757          161      158      2,211    2,234
Robe River                                53.0         109      109           93       83      1,910    1,640
Iron Ore Company of Canada                58.7          51       51           41       41        530      521
Rio Tinto Brasil                         100.0          18       18            6        7         50       50

                                                       923      935          301      289      4,701    4,445

Energy

Kennecott Energy                         100.0         169      162          118       86        447      810
Rio Tinto Coal Australia                 100.0          65       73          167      167      1,378    1,282
Rossing                                   68.6           2        2           15       15         40       40
Energy Resources of Australia             68.4           7        7           35       35        179      179

                                                       243      244          335      303      2,044    2,311

Industrial Minerals                                    248      248          176      173      2,170    2,209

Aluminium                                              449      505          202      190      3,683    3,422


Copper

Kennecott Utah Copper                    100.0          63       69           90       90      1,082    1,075
Escondida                                 30.0         113      113           54       54        624      594
Freeport                                               -        -              3        3        -        -
Grasberg joint venture                    40.0          35       30           43       43        428      397
Palabora                                  49.2          30       30           41       41        358      360
Kennecott Minerals                       100.0          36       36           27       27        166      135
Other Copper                                            42       48           23       23        190      192

                                                       319      326          281      281      2,848    2,753


Diamonds

Argyle                                   100.0          89       89           58       44        666      639
Diavik                                    60.0          49       49           67       64        599      574
Murowa                                    78.0          14       14            -        -         16       16
                                                       152      152          125      108      1,281    1,229

Other Operations                                        52       13           45       45        250      242

Product Group total                                  2,386    2,423        1,465    1,389     16,977   16,611


Other items                                              8        8          416      556      (714)    (930)
Exploration and evaluation                             (3)      (3)            2        2         72        5
Less: jointly controlled entities and                (234)    (213)        (271)    (228)
associates

Total                                                2,157    2,215        1,612    1,719     16,335   15,686

Less: net debt                                                                               (3,751)  (3,809)

Total shareholders' equity                                                                    12,584   11,877



(g)   Capital expenditure comprises the net cash outflow on purchases less
      disposals of property, plant and equipment.  The details provided include 
      100 per cent of subsidiaries' capital expenditure and Rio Tinto's share of 
      the capital expenditure of jointly controlled entities and associates. 
      Amounts relating to jointly controlled entities and associates not 
      specifically funded by Rio Tinto are deducted before arriving at total 
      capital expenditure for the Group.

(h)   Depreciation figures include 100 per cent of subsidiaries' depreciation
      and amortisation and include Rio Tinto's share of the depreciation and
      amortisation of jointly controlled entities and associates.  Amounts 
      relating to jointly controlled entities and associates are deducted before 
      arriving at the total depreciation charge for the Group.

(i)   Operating assets of subsidiaries comprise net assets before deducting net 
      debt, less outside shareholders' interests which are calculated by 
      reference to the net assets of the relevant companies (i.e. net of such 
      companies' debt).  For jointly controlled entities and associates, 
      Rio Tinto's net investment is shown.



Group income statement
Six months ended 30 June 2004
                                                                        UK GAAP (a)   Adjustments         IFRS
                                                                               US$m          US$m         US$m

Gross turnover (including share of jointly controlled entities and            6,839          (34)        6,805
associates)

Share of jointly controlled entities' and associates' turnover              (1,299)           512        (787)

Consolidated turnover                                                         5,540           478        6,018
Operating costs (excluding impairment charges)                              (4,449)         (397)      (4,846)
Impairment charges                                                            (160)             -        (160)
Profit on disposal of businesses and investments                                606           269          875

Operating profit                                                              1,537           350        1,887
Share of profit after tax of jointly controlled entities and                    325          (49)          276
associates

Profit before finance costs and taxation                                      1,862           301        2,163


Finance items

Exchange losses on external debt and intragroup balances                          -         (191)        (191)
Losses on derivatives not qualifying for hedge accounting                         -           (9)          (9)
Net interest payable and similar charges                                       (66)           (5)         (71)
Amortisation of discount related to provisions                                 (46)             5         (41)

                                                                              (112)         (200)        (312)

Profit before taxation                                                        1,750           101        1,851

Taxation                                                                      (291)            63        (228)


Profit for the period                                                         1,459           164        1,623

Attributable to outside equity shareholders                                    (20)             8         (12)

Attributable to equity shareholders of Rio Tinto (Net earnings)               1,439           172        1,611


Basic earnings per ordinary share                                            104.4c         12.4c       116.8c
Diluted earnings per ordinary share                                          104.2c         12.5c       116.7c



(a)   For an explanation of the basis of UK GAAP figures in this document, see
      'UK GAAP financial information' on page 10.

(b)   The results relate wholly to continuing operations.




Group cash flow statement
Six months ended 30 June 2004
                                                                            UK GAAP   Adjustments         IFRS
                                                                               US$m          US$m         US$m

Cash flow from subsidiary operations                                          1,601           131        1,732

Dividends from jointly controlled entities and associates                       426         (138)          288


Cash flow from operations                                                     2,027           (7)        2,020

Interest received                                                                12             2           14
Interest paid                                                                  (95)           (5)        (100)
Dividends paid to outside shareholders                                         (24)             -         (24)
Tax paid                                                                      (546)             3        (543)

Cash flow from operating activities                                           1,374           (7)        1,367



Cash flow from investing activities

Disposals less acquisitions of subsidiaries, joint ventures &                 1,137             -        1,137
associates
Purchase of property, plant & equipment and intangible assets                 (957)          (71)      (1,028)
Funding of Group share of jointly controlled entities' and
associates' capital expenditure                                                (12)            12            -
Exploration and evaluation expenditure                                         (79)             6         (73)
Proceeds from sale of property, plant and equipment and intangible assets         5             -            5
Sales less purchases of other investments                                       158          (34)          124
Cash flows relating to derivatives                                                -            78           78

Cash from investing activities                                                  252           (9)          243

Cash flow before financing activities                                         1,626          (16)        1,610



Cash flow from subsidiary operations

Equity dividends paid to Rio Tinto shareholders                               (464)             -        (464)
Net proceeds from issue of ordinary shares in Rio Tinto                          13             -           13
Finance lease principal payments                                                  -          (11)         (11)
Net proceeds from issue of new borrowings                                        77           (1)           76
Repayment of borrowings                                                     (1,204)          (13)      (1,217)
Cash flow relating to liquid resources not classified as cash and
cash equivalents                                                                 34           (1)           33

Cash used in financing activities                                           (1,544)          (26)      (1,570)

Increase in cash and cash equivalents                                            82          (42)           40



Cash flow from operations

Profit for the period                                                         1,459           164        1,623
Taxation                                                                        291          (63)          228
Net interest payable and amortisation of discount                               112             -          112
Share of profit after tax of jointly controlled entities and associates       (325)            49        (276)
Profit on disposals of interests in businesses                                (606)         (269)        (875)
Depreciation and amortisation                                                   586          (20)          566
Charge for impairment                                                           160             -          160
Exploration and evaluation charged against profit                                72             -           72
Provisions                                                                       65             2           67
Utilisation of provisions                                                      (72)             2         (70)
Change in inventories                                                         (101)          (21)        (122)
Change in trade and other receivables                                          (81)          (14)         (95)
Change in trade and other payables                                               23            80          103
Losses on derivatives not qualifying as hedges under IFRS                         -             9            9
Exchange losses on external debt and intragroup balances                          -           191          191
Other items                                                                      18            21           39

                                                                              1,601           131        1,732



Group balance sheet
At 30 June 2004
                                                                             UK GAAP     Adjustments      IFRS
                                                                              US$m          US$m          US$m

Non-current assets

Goodwill                                                                      1,078          (93)          985
Intangible assets                                                                86            80          166
Property, plant and equipment                                                14,689           179       14,868
Investments in jointly controlled entities and associates                     2,159         (404)        1,755
Loans to jointly controlled entities                                            130             -          130
Inventories                                                                      28            30           58
Trade and other receivables                                                     634           140          774
Deferred tax assets                                                              37          (12)           25
Tax recoverable                                                                 137          (13)          124
Derivatives related to net debt                                                   -           336          336
Other financial assets                                                          158            91          249

                                                                             19,136           334       19,470


Current assets

Inventories                                                                   1,788          (43)        1,745
Loans to jointly controlled entities                                             34             9           43
Trade and other receivables                                                   1,601            67        1,668
Tax recoverable                                                                  26           (2)           24
Derivatives related to net debt                                                   -             4            4
Other financial assets                                                          152            34          186
Other liquid resources                                                            2             -            2
Cash and cash equivalents                                                       357           (3)          354

                                                                              3,960            66        4,026


Current liabilities

Bank overdrafts repayable on demand                                           (125)             3        (122)
Borrowings                                                                  (1,248)           566        (682)
Trade and other payables                                                    (1,870)           408      (1,462)
Tax payable                                                                   (114)            16         (98)
Provisions                                                                    (220)          (11)        (231)

                                                                            (3,577)           982      (2,595)

Net current assets                                                              383         1,048        1,431


Non-current liabilities

Borrowings                                                                  (3,472)         (973)      (4,445)
Trade and other payables                                                      (149)         (516)        (665)
Tax payable                                                                    (90)            13         (77)
Deferred tax liabilities                                                    (1,185)         (695)      (1,880)
Provisions                                                                  (3,004)         (151)      (3,155)
                                                                            (7,900)       (2,322)     (10,222)

Net assets                                                                   11,619         (940)       10,679



Capital and reserves

Share capital
- Rio Tinto plc                                                                 155            17          172
- Rio Tinto Limited (excl. Rio Tinto plc interest)                            1,002             -        1,002
Share premium account                                                         1,641           172        1,813
Other reserves                                                                  254         (611)        (357)
Profit and loss account                                                       7,633         (349)        7,284

Total shareholders' equity                                                   10,685         (771)        9,914

Attributable to outside equity shareholders                                     934         (169)          765

Total equity                                                                 11,619         (940)       10,679





Group statement of recognised income and expense under IFRS
Six months ended 30 June 2004
                                                                        Attributable       Outside       Total
                                                                              to the     interests
                                                                             parents
                                                                                US$m          US$m        US$m

Profit for the period                                                          1,611            12       1,623
Actuarial gains/(losses) on post retirement benefit plans                         13           (2)          11

Total recognised income for the period                                         1,624            10       1,634




Statement of changes in equity under IFRS
Six months ended 30 June 2004
                                                                              Equity       Outside       Total
                                                                        attributable     interests      equity
                                                                              to the
                                                                             parents
                                                                                US$m          US$m        US$m

Balance at 1 January 2004                                                      9,200           823      10,023

Currency translation adjustment                                                (464)          (44)       (508)
Total recognised income for the period                                         1,624            10       1,634
Employee share options charged to income statement                                10             -          10
Dividends                                                                      (469)          (24)       (493)
Subsidiaries disposed of                                                           -             -           -
Ordinary shares issued                                                            13             -          13

Balance at 30 June 2004                                                        9,914           765      10,679




Reconciliation of net earnings to Underlying earnings under IFRS

                                                                     Pre-tax      Taxation    Outside        Net
                                                                                            interests     amount
Adjustments                                                                                                 US$m
Gains/(losses) relating to disposals of:
- Subsidiaries                                                           (1)             -          -        (1)
- Joint ventures                                                         (3)             -          -        (3)
- Associates                                                             751             -          -        751
- Other investments and undeveloped properties                           128             -          -        128

                                                                         875             -          -        875
Impairment charges
- Colowyo                                                              (160)             -          -      (160)

                                                                       (160)             -          -      (160)

Exchange differences and derivatives
- Exchange losses on external US$ debt and intragroup balances         (191)           101         10       (80)
- Losses on derivatives not qualifying for hedge accounting              (9)             2          -        (7)
- Exchange differences and non-qualifying derivatives in jointly 
  controlled entities and associates (net of tax)                       (10)             -          -       (10)

                                                                       (210)           103         10       (97)

Total excluded from Underlying earnings                                  505           103         10        618

Net earnings                                                           1,851         (228)       (12)      1,611

Underlying earnings                                                    1,346         (331)       (22)        993



This alternative measure of earnings is reported by Rio Tinto to provide greater
understanding of the underlying business performance of its operations. The
items to be excluded from Net earnings in arriving at 'Underlying earnings' are
as follows:

   -   Gains and losses arising on the disposal of interests in businesses
       and undeveloped properties

   -   Charges and credits relating to impairment of non-current assets,
       excluding those related to current year exploration expenditure

   -   Exchange gains and losses on US dollar debt and intragroup balances

   -   Valuation changes on currency and interest rate derivatives which are
       ineligible for hedge accounting, other than those embedded in commercial
       contracts

   -   The currency revaluation of embedded US dollar derivatives contained
       in contracts held by entities whose functional currency is not the US 
       dollar

   -   Other credits and charges that individually, or in aggregate if of a
       similar type, are of a nature and size to require exclusion in order to 
       provide additional insight into underlying business performance.



Prima facie tax reconciliation under IFRS
Six months ended 30 June 2004
                                                                                                            US$m

Profit before taxation                                                                                     1,851
Deduct: share of net profit of jointly controlled entities and associates                                  (276)

Parent companies' and subsidiaries' profit before tax                                                      1,575

Prima facie tax payable at UK and Australian rate of 30%                                                     473

Impact of items excluded from Underlying earnings                                                          (262)


Permanent differences relating to:

Other tax rates applicable outside the UK and Australia                                                     (20)
Resource depletion and other depreciation allowances                                                        (14)
Research, development and other investment allowances                                                        (2)
Exchange differences relating to deferred tax balances                                                        16
Other                                                                                                         37
                                                                                                              17

Total taxation charge for the six months ended 30 June 2004                                                  228



Consolidated net debt under IFRS
At 30 June 2004
                                                                   Cash and       Other   Borrowings   Net debt
                                                                       cash      liquid
                                                                equivalents   resources                    US$m

Analysis of changes in consolidated net debt
At 1 January                                                            241          34      (5,985)    (5,710)
Adjustment on currency translation                                     (23)           1          259        237
Exchange losses charged to the income statement                        (26)           -        (181)      (207)
Exchange losses taken through reserves                                    -           -         (32)       (32)
Finance lease principal repayments                                        -           -           11         11
Per cash flow statement                                                  40        (33)        1,141      1,148

Net debt at 30 June 2004                                                232           2      (4,787)    (4,553)



                                                  Derivatives      Cash and       Other   Borrowings   Net debt
                                                   related to          Cash      Liquid
                                                     net debt   equivalents   resources                    US$m
                                                                                                           
Reconciliation to balance sheet categories
Non-current                                               336             -           -      (4,445)    (4,109)
Current                                                     4           354           2        (682)      (322)
Bank overdrafts repayable on demand                         -             -           -        (122)      (122)

Total per balance sheet                                   340           354           2      (5,249)    (4,553)
Reallocations                                           (340)         (122)           -          462          -

Net debt per above                                          -           232           2      (4,787)    (4,553)


                                                                                                           US$m

Reconciliation to UK GAAP net debt
Net debt reported under UK GAAP                                                                         (4,486)
Effect of reclassification of subsidiaries and joint ventures                                              (67)

Net debt reported under IFRS                                                                            (4,553)




Product analysis
Six months ended 30 June 2004

         IFRS                                                        UK GAAP    Adjustments          IFRS
            %                                                           US$m           US$m          US$m

                   Gross turnover
         16.1      Copper                                              1,094              -         1,094
          5.0      Gold (all sources)                                    338              -           338
         20.0      Iron ore                                            1,362            (2)         1,360
         18.1      Coal                                                1,207             23         1,230
         16.2      Aluminium                                           1,158           (55)         1,103
         14.2      Industrial minerals                                   967              -           967
          5.4      Diamonds                                              366              -           366
          5.0      Other products                                        347              -           347

        100.0                                                          6,839           (34)         6,805

                   Net earnings

         35.6      Copper, gold and by-products                          404              9           413
         21.7      Iron ore                                              248              3           251
         13.1      Coal                                                  110             42           152
         14.0      Aluminium                                             159              3           162
          7.9      Industrial minerals                                   102           (11)            91
          7.7      Diamonds                                               86              4            90
          0.0      Other products                                        (2)              2             -

        100.0                                                          1,107             52         1,159

                   Exploration and evaluation                           (59)             10          (49)
                   Net interest                                         (33)           (10)          (43)
                   Other items                                          (22)           (52)          (74)

                   Underlying earnings                                   993              -           993
                   Items excluded from Underlying earnings               446            172           618

                   Net earnings                                        1,439            172         1,611





Geographical analysis (by country of origin)
Six months ended 30 June 2004

         IFRS                                                        UK GAAP    Adjustments          IFRS
            %                                                           US$m           US$m          US$m

                   Gross turnover
        31.8       North America                                       2,150             11         2,161
        47.1       Australia and New Zealand                           3,192             10         3,202
         7.7       South America                                         523              -           523
         5.6       Africa                                                383              -           383
         2.4       Indonesia                                             165              -           165
         5.4       Europe and other countries                            426           (55)           371

        100.0                                                          6,839           (34)         6,805

                   Net earnings

        34.9       North America                                         344             18           362
        47.5       Australia and New Zealand                             485              7           492
        16.3       South America                                         170            (1)           169
        (0.4)      Africa                                                (1)            (3)           (4)
         1.1       Indonesia                                              12            (1)            11
         0.6       Europe and other countries                             16           (10)             6

        100.0                                                          1,026             10         1,036
                   Net interest                                         (33)           (10)          (43)

                   Underlying earnings                                   993              -           993
                   Items excluded from Underlying earnings               446            172           618

                   Net earnings                                        1,439            172         1,611



The above analyses include Rio Tinto's share of the results of jointly
controlled entities and associates including interest.

The amortisation of discount is included in the applicable product category and
geographical area.  Other financing costs of subsidiaries are included in 'Net
interest'.




Rio Tinto financial information by business unit
Six months ended 30 June 2004

                                                Gross turnover (a)       EBITDA (b)         Net earnings (c)
                                     Rio Tinto
                                      interest    UK GAAP      IFRS    UK GAAP       IFRS    UK GAAP       IFRS
                                             %       US$m      US$m       US$m       US$m       US$m       US$m

Iron Ore

Hamersley (inc. HIsmelt(R))              100.0        840       840        358        348        185        179
Robe River                                53.0        270       270        149        146         50         59
Iron Ore Company of Canada                58.7        238       238         49         49         13         14
Rio Tinto Brasil                                       53        53         20         20          5          5

                                                    1,401     1,401        576        563        253        257


Energy

Kennecott Energy                         100.0        528       540        128        141         39         80
Rio Tinto Coal Australia                 100.0        679       691        191        191         71         72
Rossing                                   68.6         48        48         11         11          -          -
Energy Resources of Australia             68.4         72        72         28         28          5          5
                                                    1,327     1,351        358        371        115        157

Industrial Minerals                                   943       943        258        251         99         88

Aluminium                                  (d)      1,176     1,119        337        323        159        162



Copper

Kennecott Utah Copper                    100.0        520       520        247        247        138        151
Escondida                                 30.0        461       461        315        315        183        182
Freeport                                               43        43          7          7        (4)        (4)
Grasberg joint venture                    40.0         47        47          9          6        (6)        (8)
Palabora                                  49.2        152       152        (6)        (6)        (9)        (9)
Kennecott Minerals                       100.0        130       130         67         68         40         43
Other Copper                                          124       124         64         63         40         39
                                                    1,477     1,477        703        700        382        394


Diamonds

Argyle                                   100.0        195       195         69         69         32         36
Diavik                                    60.0        171       170        129        129         54         54
Murowa                                    78.0          -         -          -          -          -          -
                                                      366       365        198        198         86         90

Other Operations                                       94        94         38         38         13         11

Product Group total                                 6,784     6,750      2,468      2,444      1,107      1,159

Other items                                            55        55       (97)      (105)       (22)       (74)
Exploration and evaluation                                                (72)       (55)       (59)       (49)
Net interest                                                                                    (33)       (43)

Underlying earnings                                                      2,299      2,284        993        993
Items excluded from Underlying earnings                                    456        865        446        618

Total                                               6,839     6,805      2,755      3,149      1,439      1,611

Depreciation & amortisation in subsidiaries                              (586)      (566)
Impairment charges                                                        (10)      (150)
Depreciation & amortisation in jointly
controlled entities and associates                                       (128)      (109)
Taxation and finance items in jointly
controlled entities and associates                                       (169)      (161)
Profit before finance costs and tax                                      1,862      2,163


(a)   Gross turnover includes 100 per cent of subsidiaries' turnover and the
      Group's share of the turnover of jointly controlled entities and 
      associates. UK GAAP turnover has been restated to gross up certain amounts 
      charged to customers for freight and handling, which previously were 
      deducted from operating costs.

(b)   EBITDA of subsidiaries, jointly controlled entities and associates
      represents profit before: tax, net finance items, depreciation and 
      amortisation.

(c)   Net earnings represent profit after tax earnings attributable to the 
      Rio Tinto Group.  Earnings of subsidiaries are stated before finance items 
      but after the amortisation of the discount related to provisions.  
      Earnings attributable to jointly controlled entities and associates 
      include interest charges and amortisation of discount, but exclude 
      movements relating to foreign exchange on net debt, and the impact of 
      fair value adjustments to derivatives not qualifying for hedge accounting 
      under IFRS.  Business unit net earnings exclude items that are not 
      included in the Group's definition of Underlying earnings.

(d)   Includes Rio Tinto's interest in Anglesey Aluminium (51 per cent) and
      Comalco (100 per cent).

(e)   Business units have been classified above according to the Group's
      management structure.  Generally, this structure has regard to the primary
      product of each business unit but there are exceptions.  For example, the 
      Copper group includes certain gold operations.  This summary differs, 
      therefore, from the Product analysis in which the contributions of 
      individual business units are attributed to several products as 
      appropriate.

(f)   Certain items previously reported as central items have been allocated
      to the Business Units to which they relate.  This reflects the way in 
      which this information will be presented in the Group's first complete 
      set of IFRS financial statements for the year ending 31 December 2005.




Rio Tinto financial information by business unit (continued)
Six months ended 30 June 2004

                                                  Capital expenditure (g)    Depreciation &      Operating assets (i)
                                                                             amortisation (h)
                                         Rio Tinto
                                          interest    UK GAAP       IFRS    UK GAAP       IFRS    UK GAAP        IFRS
                                                 %       US$m       US$m       US$m       US$m       US$m        US$m

   Iron Ore

   Hamersley (inc. HIsmelt(R))               100.0        325        329         86         83      1,663       1,680
   Robe River                                 53.0         38         37         46         41      1,694       1,448
   Iron Ore Company of Canada                 58.7         12         12         16         17        479         470
   Rio Tinto Brasil                                         6          6          3          3         75          86

                                                          381        384        151        144      3,911       3,684


   Energy

   Kennecott Energy                          100.0        102         96         65         51        453         810
   Rio Tinto Coal Australia                  100.0         17         25         78         80      1,316       1,244
   Rossing                                    68.6          1          1          8          8         52          52
   Energy Resources of Australia              68.4          2          2         14         14        166         166

                                                          122        124        165        153      1,987       2,272

   Industrial Minerals                                     78         73         87         85      2,055       2,051

   Aluminium                                              219        258         90         79      3,220       2,958


   Copper

   Kennecott Utah Copper                     100.0         20         26         46         46      1,124       1,149
   Escondida                                  30.0         36         36         25         25        498         477
   Freeport                                                 -          -          3          3          -           -
   Grasberg joint venture                     40.0         17         16         19         19        405         378
   Palabora                                   49.2         19         19         22         22        472         472
   Kennecott Minerals                        100.0         13         13         16         17        134         114
   Other Copper                                            32         38         15         15        159         159

                                                          137        148        146        147      2,792       2,749


   Diamonds

   Argyle                                    100.0         47         47         20         16        567         531
   Diavik                                     60.0         25         25         32         31        615         591
   Murowa                                     78.0          8          8          -          -         10          10
                                                           80         80         52         47      1,192       1,132

   Other Operations                                        21          7         14         14        219         211

   Product Group total                                  1,038      1,074        705        669     15,376      15,057

   Other items                                              4          4          8        155      (287)       (613)
   Exploration and evaluation                               -          -          1          1         82         23
   Less: jointly controlled entities and associates      (78)       (55)      (128)      (109)

   Total                                                  964      1,023        586        716     15,171     14,467

   Less: net debt                                                                                 (4,486)     (4,553)

   Total shareholders' equity                                                                      10,685       9,914


(g)   Capital expenditure comprises the net cash outflow on purchases less
      disposals of property, plant and equipment.  The details provided include 
      100 per cent of subsidiaries' capital expenditure and Rio Tinto's share 
      of the capital expenditure of jointly controlled entities and associates. 
      Amounts relating to jointly controlled entities and associates not 
      specifically funded by Rio Tinto are deducted before arriving at total 
      capital expenditure for the Group.

(h)   Depreciation figures include 100 per cent of subsidiaries' depreciation
      and amortisation and include Rio Tinto's share of the depreciation and
      amortisation of jointly controlled entities and associates.  Amounts 
      relating to jointly controlled entities and associates are deducted 
      before arriving at the total depreciation charge for the Group.

(i)   Operating assets of subsidiaries comprise net assets before deducting net 
      debt, less outside shareholders' interests which are calculated by 
      reference to the net assets of the relevant companies (i.e. net of such 
      companies' debt). For jointly controlled entities and associates, 
      Rio Tinto's net investment is shown.



Directors' responsibilities

The directors are required by UK and Australian Company law to prepare financial
statements for each financial period which give a true and fair view of the
state of affairs of the Group as at the end of the financial period and of the
profit or loss and cash flows for that period.  To ensure that this requirement
is satisfied the directors are responsible for establishing and maintaining
adequate internal controls and procedures for financial reporting throughout the
Group.

For the year ending 31 December 2005, the directors will be preparing the
Group's financial statements in accordance with International Financial
Reporting Standards (IFRS) for the first time. As part of the transition to
IFRS, the directors are presenting financial information prepared under IFRS for
the year ended 31 December 2004 and the six months ended 30 June 2004.

The directors are responsible for the selection of the accounting policies and
the selection of transition options under IFRS1, including the assumptions made
about the standards and interpretations expected to be effective, and the
policies expected to be adopted, when the Group's first complete set of IFRS
financial statements are prepared.

The directors are responsible for maintaining proper accounting records, and
they have a general responsibility for taking such steps as are reasonably open
to them to safeguard the assets of the Group and to prevent and detect fraud and
other irregularities.

The directors are also responsible for the maintenance and integrity of the
Group's website. The work carried out by the independent accountants does not
involve responsibility for any changes that may have occurred to the IFRS
financial information since it was initially loaded on to the website.


Directors' declaration

The IFRS financial information for the year ended 31 December 2004 and period
ended 30 June 2004 has been prepared in accordance with the basis of preparation
and accounting policies set out on pages 9 to 14. We consider that the
accounting policies and transition options we have selected are appropriate for
Rio Tinto's business and supported by reasonable and prudent judgements.

The IFRS financial information has been prepared on the going concern basis
since, in our opinion, each of the Rio Tinto Group, Rio Tinto plc and Rio Tinto
Limited has adequate financial resources to continue in operational existence
for the foreseeable future and to pay its debts as and when they become due and
payable.



By order of the board



G R Elliott Finance Director
5 May 2005




Special Purpose Audit Report

To Rio Tinto plc and Rio Tinto Limited ('the Companies') on their International
Financial Reporting Standards ('IFRS') Financial Information for the Year Ended
31 December 2004

We have audited the IFRS balance sheet of the Rio Tinto Group (comprising the
Companies and their subsidiaries) as at 31 December 2004, the related Group IFRS
income statement and the Group IFRS cash flow statement for the year then ended
and the related notes (hereinafter referred to as 'the IFRS financial
information') set out on pages 15 to 22.

The IFRS financial information for the year ended 31 December 2004 has been
prepared by the Companies as part of their transition to IFRS and, as described
on page 9, the  directors of the Companies expect to include it as comparative
financial information in the Group's first complete set of IFRS financial
statements for the year ending 31 December 2005.



Respective responsibilities of directors and auditors

The directors of the Companies are responsible for the preparation of the IFRS
financial information.

Our responsibilities, as independent auditors, are established in the United
Kingdom by the Auditing Practices Board, our profession's ethical guidance and
the terms of our engagement.  Under the terms of engagement, we are required to
report to you our opinion as to whether the IFRS financial information has been
prepared, in all material respects, in accordance with the basis of preparation
and accounting policies set out on pages 9 to 14.

This report, including the opinion, has been prepared for, and only for, the
Companies for the purposes of assisting with their transition to IFRS and for no
other purpose.  We do not, in giving this opinion, accept or assume
responsibility for any other purpose or to any other person to whom this report
is shown or into whose hands it may come save where expressly agreed by our
prior consent in writing.


Basis of audit opinion

We conducted our audit in accordance with United Kingdom Auditing Standards
issued by the Auditing Practices Board.  An audit includes examination, on a
test basis, of evidence relevant to the amounts and disclosures in the IFRS
financial information.  It also includes an assessment of the significant
estimates and judgements made by the directors in the preparation of the IFRS
financial information, and of whether the accounting policies are appropriate to
the Group's circumstances and adequately disclosed.

We planned and performed our audit so as to obtain all the information and
explanations which we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the IFRS financial
information is free from material misstatement, whether caused by fraud or other
irregularity or error.  In forming our opinion, we have also evaluated the
overall adequacy of the presentation of information in the IFRS financial
information.


Emphasis of matter

Without qualifying our opinion, we draw your attention to the fact that, as
explained on page 9, the IFRS financial information may require adjustment
before its inclusion as comparative information in the Group's first complete
set of IFRS financial statements for the year ending 31 December 2005.

This is because further Interpretations may be issued by the International
Financial Reporting Interpretations Committee, and further Standards may be
issued by the International Accounting Standards Board.  Furthermore, the
directors have assumed that the EU will endorse certain Standards and
Interpretations currently in issue that have not yet been endorsed.  In
addition, there is not yet a significant body of established practice on which
to draw in forming opinions regarding interpretation and application.
Accordingly, practice is continuing to evolve.

At this preliminary stage, therefore, the full financial effect of reporting
under IFRS as it will be applied in the Group's first complete set of IFRS
financial statements for the year ending 31 December 2005 may be subject to
change.


Opinion

In our opinion, the IFRS financial information set out on pages 15 to 22 has
been prepared, in all material respects, in accordance with the basis of
preparation and accounting policies set out on pages 9 to 14, which describe how
IFRS has been applied under IFRS 1, including the assumptions made by the
directors of the Companies about the Standards and Interpretations expected to
be effective, and the policies expected to be adopted, when they prepare the
Group's first complete set of IFRS financial statements for the year ending 31
December 2005.




PricewaterhouseCoopers LLP                    PricewaterhouseCoopers
Chartered Accountants                         Chartered Accountants
London                                        Perth
5 May 2005                                    5 May 2005
In respect of Rio Tinto plc                   In respect of Rio Tinto Limited



Special Purpose Review Report

To Rio Tinto plc and Rio Tinto Limited ('the Companies') on their International
Financial Reporting Standards ('IFRS') Financial Information for the Six Months
Ended 30 June 2004

We have reviewed the IFRS balance sheet of the Rio Tinto Group (comprising the
Companies and their subsidiaries) as at 30 June 2004, the related Group IFRS
income statement and the Group IFRS cash flow statement for the six months then
ended and the related notes (hereinafter referred to as 'the IFRS interim
financial information') set out on pages 23 to 30.

The IFRS interim financial information has been prepared by the Companies as
part of their transition to IFRS and, as described on page 9, the directors of
the Companies expect to include it as comparative information in the Group's
half year report for the period ending 30 June 2005.


Directors' responsibilities

The IFRS interim financial information is the responsibility of, and has been
approved by, the directors of the Companies.  The directors are responsible for
preparing the interim IFRS financial information in accordance with the basis of
preparation and accounting policies set out on pages 9 to 14, which describe how
IFRS has been applied under IFRS 1, including the assumptions made by the
directors of the Companies about the Standards and Interpretations expected to
be adopted when they prepare the Group's first complete set of IFRS financial
statements for the year ending 31 December 2005.


Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of Group management and applying
analytical procedures to the IFRS interim financial information and underlying
financial data and, based thereon, assessing whether the basis of preparation
and accounting policies set out on pages 9 to 14 have been consistently applied
in preparing the interim IFRS financial information.  A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions.  It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore provides a lower
level of assurance than an audit.  Accordingly, we do not express an audit
opinion on the IFRS interim financial information. This report, including the
conclusion, has been prepared for and only for the Companies for the purposes of
assisting with their transition to IFRS and for no other purpose.  We do not, in
producing this report, accept or assume responsibility for any other purpose or
to any other person to whom this report is shown or into whose hands it may come
save where expressly agreed by our prior consent in writing.


Emphasis of matter

Without modifying our review conclusion, we draw your attention to the fact
that, as explained on page 9, the basis of preparation and accounting policies
used to draw up the IFRS interim financial information may require adjustment
before the Group issues its first complete set of IFRS financial statements for
the year ending 31 December 2005.

This is because further Interpretations may be issued by the International
Financial Reporting Interpretations Committee, and further Standards may be
issued by the International Accounting Standards Board.  Furthermore, the
directors have assumed that the EU will endorse certain Standards and
Interpretations currently in issue that have not yet been endorsed.  In
addition, there is not yet a significant body of established practice on which
to draw in forming opinions regarding interpretation and application.
Accordingly, practice is continuing to evolve.

At this preliminary stage, therefore, the full financial effect of reporting
under IFRS as it will be applied in the Group's first complete set of IFRS
financial statements for the year ending 31 December 2005 may be subject to
change.


Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the IFRS interim financial information as presented for the
six months ended 30 June 2004.




PricewaterhouseCoopers LLP                   PricewaterhouseCoopers
Chartered Accountants                        Chartered Accountants
London                                       Perth
5 May 2005                                   5 May 2005
In respect of Rio Tinto plc                  In respect of Rio Tinto Limited



Reconciliation of earnings
Year ended 31 December 2004
                                                     IFRS adjustments                     Non IFRS adjustments
                              UK GAAP     Goodwill Deferred  Exchange /  Other IFRS      Exploration       US tax   IFRS
                                 US$m amortisation      tax derivatives adjustments reclassification reallocation   US$m
                                                

Iron Ore

Hamersley (inc. HIsmelt(R))       447            -        -           -          3               (20)            -   430
Robe River                        119           10        7           -        (1)                (5)            -   130
Iron Ore Company of Canada          3            -        1           -          -                  -            -     4
Rio Tinto Brasil                    1            -        -           -          -                  -            -     1

                                  570           10        8           -          2               (25)            -   565

Energy

Kennecott Energy                  119           37        -           -         21                  -            3   180
Rio Tinto Coal Australia          231            -        9           -        (3)                (1)            -   236
Rossing                           (4)            -        -           -          -                  -            -   (4)
Energy Resources of                19            -        -           -          -                  -            -    19
Australia
                                  365           37        9           -         18                (1)            3   431

Industrial Minerals               223            3      (1)           -         22                  -          (4)   243

Aluminium                         334           13        7        (11)       (12)                  -            -   331


Copper

Kennecott Utah Copper             294            -        -           -          -                  -           17   311
Escondida                         416            -     (10)           -          -                  -            -   406
Freeport                          (4)            -        -           -          -                  -            -   (4)
Grasberg joint venture             38            -      (2)           -          -                (4)            -    32
Palabora                         (21)            -        -           -          -                  -            -  (21)
Kennecott Minerals                 79            -        -           -          -                  -            3    82
Other Copper                       54            -        -           -          -                  -            -    54

                                  856            -     (12)           -          -                (4)           20   860


Diamonds

Argyle                             23           14        3           -          -                  -            -    40
Diavik                            145            -        -           -          2                  -            -   147
Murowa                              1            -        -           -          -                  -            -     1
                                  169           14        3           -          2                  -            -   188

Other Operations                   27            -      (1)           -          -                  -          (1)    25

Product Group total             2,544           77       13        (11)         32               (30)           18 2,643

Other items                     (114)            -     (20)           -       (31)                  -          (9) (174)
Exploration and evaluation      (152)            -        -           -          -                 30          (6) (128)
Net interest                     (57)            -        -           -        (9)                  -          (3)  (69)

Underlying earnings             2,221           77      (7)        (11)        (8)                  -            - 2,272
Items excluded from
Underlying earnings               592            -        -          92        262                  -            -   946
                               
Net earnings                    2,813           77      (7)          81        254                  -            - 3,218



Reconciliation of EBITDA
Year ended 31 December 2004
                                                         IFRS adjustments                Non IFRS
                                                                               Other
                                      UK GAAP       Goodwill     JV/sub         IFRS       Exploration        IFRS
                                         US$m   amortisation    reclass  adjustments  reclassification        US$m

Iron Ore

Hamersley (inc. HIsmelt(R))               800              -          -            -              (28)         772
Robe River                                325              -          -            -               (7)         318
Iron Ore Company of Canada                 55              -          -            -                 -          55
Rio Tinto Brasil                           31              -          -            -                 -          31

                                        1,211              -          -            -              (35)       1,176


Energy

Kennecott Energy                          277              -         21            -                 -         298
Rio Tinto Coal Australia                  540              -        (1)            -               (3)         536
Rossing                                     8              -          -            -                 -           8
Energy Resources of Australia              70              -          -            -                 -          70
                                          895              -         20            -               (3)         912

Industrial Minerals                       538              -          -           16                 -         554

Aluminium                                 720              -       (13)         (19)                 -         688


Copper

Kennecott Utah Copper                     498              -          -            -                 -         498
Escondida                                 699              -          -            -                 -         699
Freeport                                    7              -          -            -                 -           7
Grasberg joint venture                    102              -          -            -               (4)          98
Palabora                                 (20)              -          -            -                 -        (20)
Kennecott Minerals                        129              -          1            -                 -         130
Other Copper                               91              -          -            1               (1)          91
                                        1,506              -          1            1               (5)       1,503


Diamonds

Argyle                                    102              -          -            -                 -         102
Diavik                                    316              -          -            -                 -         316
Murowa                                      1              -          -            -                 -           1
                                          419              -          -            -                 -         419

Other Operations                           81              -          -            -                 -          81

Product Group total                     5,370              -          8          (2)              (43)       5,333

Other items                             (221)              -        (4)         (25)                 -       (250)
Exploration and evaluation              (187)              -          -            2                43       (142)

Underlying EBITDA                       4,962              -          4         (25)                 -       4,941
Items excluded from Underlying
EBITDA                                    771              -        139          260                 -       1,170
                                        
Total                                   5,733              -        143          235                 -       6,111

Depreciation & amortisation in
subsidiaries                          (1,204)             73       (46)            6                 -     (1,171)
                                    
Impairment charges                      (408)              -      (140)            -                 -       (548)
Depreciation & amortisation in
jointly controlled entities and
associates                              (271)              4         39            -                 -       (228)
Taxation and finance items in
jointly controlled entities and
associates                              (394)              -         76            4                 -       (314)
Profit before finance costs and tax    3,456              77         72          245                 -       3,850




Reconciliation of net earnings
Six months ended 30 June 2004
                                                   IFRS adjustments                    Non IFRS adjustments

                             UK GAAP     Goodwill Deferred  Exchange /  Other IFRS      Exploration       US tax  IFRS
                                US$m amortisation      tax Derivatives adjustments reclassification reallocation  US$m

Iron Ore

Hamersley (inc. HIsmelt          185            -        -           -           -              (6)            -   179
(R))
Robe River                        50            7        4           -           -              (2)            -    59
Iron Ore Company of               13            -        1           -           -                -            -    14
Canada
Rio Tinto Brasil                   5            -        -           -           -                -            -     5

                                 253            7        5           -           -              (8)            -   257

Energy

Kennecott Energy                  39           19        -           -           8                -           14    80
Rio Tinto Coal Australia          71            -        3           -         (2)                -            -    72
Rossing                            -            -        -           -           -                -            -     -
Energy Resources of                5            -        -           -           -                -            -     5
Australia
                                 115           19        3           -           6                -           14   157

Industrial Minerals               99            2        2           -        (16)                -            1    88

Aluminium                        159            5        4         (6)           -                -            -   162


Copper

Kennecott Utah Copper            138            -        -           -           -                -           13   151
Escondida                        183            -      (1)           -           -                -            -   182
Freeport                         (4)            -        -           -           -                -            -   (4)
Grasberg joint venture           (6)            -        -           -           -              (2)            -   (8)
Palabora                         (9)            -        -           -           -                -            -   (9)
Kennecott Minerals                40            -        -           -           -                -            3    43
Other Copper                      40            -        -           -           -              (1)            -    39
                                 382            -      (1)           -           -              (3)           16   394


Diamonds

Argyle                            32            4        1           -         (1)                -            -    36
Diavik                            54            -        -           -           -                -            -    54
Murowa                             -            -        -           -           -                -            -     -
                                  86            4        1           -         (1)                -            -    90

Other Operations                  13            -      (2)           -           -                -            -    11

Product Group total            1,107           37       12         (6)        (11)             (11)           31 1,159

Other items                     (22)            -      (8)           -        (20)                -         (24)  (74)
Exploration and                 (59)            -        -           -           -               11          (1)  (49)
evaluation
Net interest                    (33)            -        -           -         (4)                -          (6)  (43)


Underlying earnings              993           37        4         (6)        (35)                -            -   993

Items excluded from Underlying
earnings
                                 446            -        -        (97)         269                -            -   618

Total                          1,439           37        4       (103)         234                -            - 1,611




Reconciliation of EBITDA
Six months ended 30 June 2004
                                                     IFRS adjustments                Non IFRS
                                                                          Other
                                    UK GAAP      Goodwill   JV/sub         IFRS        Exploration        IFRS
                                       US$m  amortisation  reclass  adjustments   reclassification        US$m


Iron Ore

Hamersley (inc. HIsmelt(R))             358             -        -            -               (10)         348
Robe River                              149             -        -            -                (3)         146
Iron Ore Company of Canada               49             -        -            -                  -          49
Rio Tinto Brasil                         20             -        -            -                  -          20
                                        576             -        -            -               (13)         563


Energy

Kennecott Energy                        128             -       13            -                  -         141
Rio Tinto Coal Australia                191             -        -            -                  -         191
Rossing                                  11             -        -            -                  -          11
Energy Resources of Australia            28             -        -            -                  -          28
                                        358             -       13            -                  -         371

Industrial Minerals                     258             -        -          (7)                  -         251

Aluminium                               337             -      (1)         (13)                  -         323


Copper

Kennecott Utah Copper                   247             -        -            -                  -         247
Escondida                               315             -        -            -                  -         315
Freeport                                  7             -        -            -                  -           7
Grasberg joint venture                    9             -        -            -                (3)           6
Palabora                                (6)             -        -            -                  -         (6)
Kennecott Minerals                       67             -        1            -                  -          68
Other Copper                             64             -        -            -                (1)          63
                                        703             -        1            -                (4)         700


Diamonds

Argyle                                   69             -        -            -                  -          69
Diavik                                  129             -        -            -                  -         129
Murowa                                    -             -        -            -                  -           -
                                        198             -        -            -                  -         198

Other Operations                         38             -        -            -                  -          38

Product Group total                   2,468             -       13         (20)               (17)       2,444

Other items                            (97)             -      (1)          (7)                  -       (105)
Exploration and evaluation             (72)             -        -            -                 17        (55)

Underlying EBITDA                     2,299             -       12         (27)                  -       2,284
Items excluded from Underlying
EBITDA                                  456             -      140          269                  -         865

Total                                 2,755             -      152          242                  -       3,149

Depreciation & amortisation in
subsidiaries                          (586)            37     (21)            4                  -       (566)
                                    
Impairment charges                     (10)             -    (140)            -                  -       (150)
Depreciation & amortisation in
jointly controlled entities and
associates                            (128)             -       19            -                  -       (109)

Taxation and finance items in
jointly controlled entities and
associates                            (169)             -       26         (18)                  -       (161)

Profit before finance costs and tax   1,862            37       36          228                  -       2,163



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            The company news service from the London Stock Exchange