ATO tax assessments

Rio Tinto PLC
16 July 2003


Rio Tinto disputes ATO tax assessments

As stated in Rio Tinto's 2002 Annual report and financial statements (see
attachment), in 2002 the Australian Taxation Office issued assessments of
approximately A$500 million against the Rio Tinto Limited group.  These
assessments (which included penalties and interest) relate to transactions
undertaken in 1997 to acquire franking credits.

The transactions were conducted based on Rio Tinto's considered view of the law
prevailing at the time.  Subsequently the law was changed.

Rio Tinto lodged objections to the assessments and on 26 May 2003 the ATO
substantially disallowed those objections.  Rio Tinto has today lodged
proceedings in the Federal Court to dispute the assessments.

As required by Australian tax law, part payment of the disputed tax is required
pending resolution of the dispute.  The amount is under consideration by the
ATO, but it has been agreed that it will not be greater than A$164 million.
This payment will be subject to recovery with interest if, as it is believed
based on Counsels' opinion, the Group is successful in challenging the
assessments.

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

Peter Cunningham                                     Dave Skinner

Office:  [phone]                        Office:  [phone]

Mobile: [phone]                         Mobile: [phone]

Richard Brimelow                                     Daphne Morros

Office:  [phone]                        Office:  [phone]

Mobile: [phone]                         Mobile: [phone]


Website: www.riotinto.com

Attachment to News Release,16 July 2003

(1) Note 29 (Contingent Liabilities and Commitments) states as follows:

'In 2002, the Australian Taxation Office issued assessments of approximately
A$500M (which amount includes penalties and interest) in relation to certain
transactions undertaken by the Australian group in a prior year.  The Group has
lodged objections to the assessments but these have not yet been determined.
This dispute may result in litigation but, based on Counsels' opinion, the
directors believe that the assessments are not sustainable under the Australian
law prevailing at the time of the transactions.  Accordingly, the directors
believe that no material loss will arise.

In accordance with Australian tax law and practice, payment of all or part of
the disputed tax assessments may be required pending resolution of the dispute.
Any such payments will be subject to recovery with interest if, as it is
believed, the Group is successful in challenging the assessments.'


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