Coal & Allied

Rio Tinto PLC
10 December 2003


Coal & Allied earnings outlook for 2003


Coal & Allied today announced that the company expects to report a loss of
approximately A$20 million for the full year for 2003 as a result of the
stronger Australian dollar, lower coal prices and increased demurrage costs.


Full-year earnings for 2002 were A$159.7 million and half year earnings for the
six months to 30 June 2003 were A$7.2 million.


Managing Director of Coal & Allied, Mr Gary Goldberg said,  'Revenues continue
to be adversely affected by the extremely strong Australian dollar and increased
demurrage costs as a result of continued congestion due to a shortage of
capacity in the Hunter Valley rail system.  We have made good progress
throughout 2003 in implementing operational and other cost reduction changes and
are continuing to explore further options to reduce our costs and improve our
performance for 2004 and beyond'.


'Year to date, the Australian dollar has averaged 64.1 US cents compared with
54.3 US cents for 2002 and has been above 74 US cents today.  This, together
with lower average realised coal prices for 2003 and demurrage costs averaging
US$1 per tonne over the year, will adversely affect our results,' he said.



Every one cent increase in the value of the Australian dollar against the US
dollar reduces Coal & Allied's annual net profit after tax by around A$9
million.  Similarly, for every one US dollar fall in the export coal price, or
increase in demurrage costs, Coal & Allied's annual net profit after tax is
reduced by around A$22 million.



For further information, please contact:

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Website: www.riotinto.com


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