Coal & Allied Annual Results

Rio Tinto PLC
29 January 2002

            Coal & Allied benefits from acquisitions and integration

FINANCIAL SUMMARY

•  Net profit after tax for 2001 was $212.5 million, up 72% from $123.5 million
in 2000. Excluding the effect of a one-off gain in 2000, the net profit increase
was 135%.

•  Sales revenue increased 139% to $1,443.2 million, reflecting increased
volumes from acquisitions and higher prices.

•  Final dividends of 40 cents per ordinary share and 1.75 cents per preference
share, both fully franked, were declared, taking total dividends for the year to
75 cents per ordinary share and 3.5 cents per preference share.


Rio Tinto owns 72.7 per cent of Coal & Allied Industries.  All $ are A$ unless
otherwise stated.


Commenting on the result, Coal & Allied's Managing Director, Mr Gary Goldberg
said, 'It was an excellent result for the company with greatly improved safety
performance and profit.

'The acquisitions have transformed the company, more than doubling its
productive capacity in 2001.  Year on year profit rose 72% as a result of
increased volumes, the lower Australian dollar, higher contract prices and a
continued focus on cost reduction.



'The merger of the Lemington mine into the Hunter Valley Operations' complex was
successfully completed in early 2001.  Integration of the acquired Hunter Valley
mines progressed well during 2001 with benefits flowing from more efficient use
of employees and equipment. We will continue the consolidation process this year
and expect to realise further cost savings and efficiencies across the combined
operations.



'I am particularly pleased that the company's focus on safety resulted in a
sharp fall in lost time injuries. Coal & Allied is committed to eliminating
injuries in the workplace and we will continue to work closely with all
employees to achieve that aim.'


SUMMARY OF FINANCIAL PERFORMANCE


Coal & Allied's results for 2001 are shown below, along with comparative results
for 2000.

                                                                        Year to 31 December
                                                                                  2001            2000          Change
                                                                                                                  %

Sales revenue ($ millions)                                                      1,443.2           604.1             139


Net profit after tax  ($ millions)                                                212.5           123.5              72
Operating cash flow ($ millions)                                                  379.9           132.2             187
Dividends (cents per share)1                                                         75             200            (62)
Coal production2 (million tonnes)                                                35,951          12,974             177
Coal shipments2 (million tonnes)                                                 35,713          13,152             172


1 Dividends for 2000 include a special interim dividend.

2 Production and shipments are on a 100% basis. Shipments exclude purchased
coal.


Sales Revenue

Sales revenue of $1,443.2 million was up 139% reflecting higher prices,
increased shipments and the benefit of the weaker Australian dollar.



Production

Managed production was up by 23 million tonnes to 36 million tonnes, reflecting
the acquisitions made in 2000 and 2001.  Coal & Allied is entitled to about 26
million tonnes of saleable coal.



Dividends

Directors declared final dividends of 40 cents per ordinary share and 1.75 cents
per preference share, both fully franked. This compares with no final dividend
for ordinary shares and 1.75 cents per preference share fully franked for 2000.



Total dividends for 2001 were 75 cents per ordinary share and 3.5 cents per
preference share both fully franked, compared with 200 cents per ordinary share
partially franked to 55 cents and 3.5 cents per preference share fully franked
for 2000.



Final dividends will be paid on 28 February 2002 to shareholders registered at
close of business on 21 February 2002.  Following payment of final dividends,
there will be $46.9 million of available franking credits at a tax rate of 30%.



Cash Flow

Net operating cash flow increased 187% to $380 million reflecting strong sales
volumes, higher realised coal prices and the lower Australian dollar.



Hedging

Hedge contracts on sales totalling $10.2 million at an average exchange rate of
53 US cents matured during 2001, completing the program undertaken in 2000.
Additional hedges, inherited as part of the Peabody acquisition, comprise
approximately $39 million maturing in 2002 and a further $41 million maturing in
the period 2003 to 2005 both at an average rate of 54 US cents. Coal & Allied
has not entered into any new hedge contracts.



Debt

The Peabody and Lemington acquisitions increased net debt to $1.1 billion,
compared with $181 million in 2000. During 2001, debt repayments of $202 million
were made. Net debt to total capital was 61% at 31 December 2001 compared with
25% at the end of 2000.



Capital Expenditure And Investments

Total capital expenditure and investments for the year were $938.7 million
compared with $264.8 million in 2000. The increase included $828 million for the
acquisition of Peabody's Australian coal assets and $52 million for the
acquisition of an additional 11.82% interest in the Warkworth Mining Joint
Venture.



Market Conditions

The market for all coal remained strong throughout 2001, underpinned by new
electricity generating capacity and reasonable global economic conditions.
Additional demand for thermal coal was assisted by higher oil and gas prices
early in the year, which in turn encouraged end users to revert to coal use.
Another factor affecting demand was the energy crisis in the US, which diverted
coal normally destined for export into the domestic market.



The additional demand for thermal coal helped to absorb the unexpectedly large
increase in China's coal exports. The net effect was a slight downward trend in
thermal coal prices following the substantial increases achieved in major
markets earlier in the year.  There is emerging evidence that energy growth in
China is outpacing available domestic supply.  This may slow China's exports or
help create a new import    market for coal.


Hard coking coal was in short supply with current prices exceeding those settled
in major markets early in 2001. Semi soft coking coal was in strong demand as
steel producers sought to reduce raw material input costs.

REVIEW OF OPERATIONS

In this Review of Operations, production figures for the ex-Peabody mines
(Bengalla, Moura, Narama, Ravensworth East and Warkworth) cover the period from
the effective date of acquisition (29 January 2001) to 31 December 2001.  The
percentages in brackets below represent Coal & Allied's equity interest.



Mount Thorley Operations (80%)

Production from the Mount Thorley open cut mine of 4.5 million tonnes was
slightly higher than in 2000.  The increase was a result of the coal preparation
plant moving to seven-day operations for the second half of 2001 as well as
continued improvements in truck and shovel performance.



Hunter Valley Operations (100%)

Production of 12.2 million tonnes was achieved compared with 8.6 million tonnes
for 2000. Work continued on the development of new mining areas at Carrington
and Cheshunt to replace the North pit.  The Lemington mine was successfully
integrated with Hunter Valley Operations.  The Hunter Valley complex will have
an annual capacity of 14 million tonnes when pit development work is completed
in the second half of 2002.



Warkworth (55.57%)

Production at Warkworth was 5.7 million tonnes with some parts of the operation
moving to seven-day production in the final quarter of 2001.



Bengalla (40%)

Bengalla achieved production of 4.9 million tonnes as the mine ramped up to
design capacity operating on a seven day basis.



Ravensworth (100%) And Narama (50%)

In its first full year of production, Ravensworth East produced 1.5 million
tonnes. Production at the Narama mine was 2.2 million tonnes.  In December, Coal
& Allied reached agreement to sell the wholly-owned Ravensworth operations and
its 50% interest in the Narama mine.  Completion of the sale, which is subject
to a number of conditions, is expected in the first half of 2002.



Moura (55%)

The Moura mine, in Queensland, continued strong performance, producing 4.9
million tonnes of coking and thermal coal.  A number of selected parties
commenced due diligence to purchase Coal & Allied's 55% share of the Moura mine.
  The sale process is expected to conclude in 2002.



Mount Pleasant (100%)

Development of the Mount Pleasant project continued following the granting of
development consent in 2000. This consent was based on a seven million tonnes
per annum open cut mining operation with a twenty-year mine life.



While capable of development as a stand-alone operation, its proximity to the
Bengalla mine offers potential for efficiencies through infrastructure sharing.
A final decision will be subject to further development consents and joint
venture approvals.



Integration

Operational savings of $26 million a year have been achieved to date, through
reduced manning levels, improved equipment utilisation and lower rail freight
charges.  The integration process will continue this year with further cost
savings and efficiencies likely to be achieved across the combined operations.



At Mount Thorley and Warkworth, equipment sharing has begun and work has been
conducted to optimise the mine plans to capitalise on unused capacity at Mount
Thorley's coal preparation plant. Subject to agreement with joint venture
participants and development consents, integration of the two operations could
be achieved within 18 months.



AIRC Decision

During 2001 the Australian Industrial Relations Commission handed down decisions
in relation to alleged unfair dismissals resulting from the retrenchments at
Hunter Valley No. 1 mine in 1998 and at Mount Thorley Operations in 1999.



Despite findings that the retrenchments were justified in terms of operational
requirements the dismissals were determined to be unfair. Coal & Allied
continues to maintain that these retrenchments were applied fairly and has
appealed both decisions.



Macquarie Generation

During 2001 Macquarie Generation commenced court proceedings against Coal &
Allied in both the Federal Court and the Supreme Court of New South Wales
regarding matters arising from the Peabody acquisition. Coal & Allied
successfully defended the Supreme Court action. The Federal Court hearing is
scheduled in late February 2002.

For further information, please contact:


LONDON                                                 AUSTRALIA

Media Relations                                        Media Relations

Lisa Cullimore                                         Ian Head
+ 44 (0) 20 7753 2305                                  [phone]
Investor Relations                                     Investor Relations
Peter Cunningham                                       Dave Skinner
+ 44 (0) 20 7753 2401                                  [phone]
                                                       Daphne Morros
                                                       [phone]


Website: www.riotinto.com



Coal & Allied Financial and Operating Statistics


                                                                                                 2001             2000
Production and shipments                                                                  '000 tonnes      '000 tonnes


Total shipments 1                                                                              35,713           13,152


Total saleable production 2

Hunter Valley Operations                                                                       12,243            8,585

Mount Thorley Operations                                                                        4,547            4,389

Bengalla                                                                                        4,894                -

Moura                                                                                           4,888                -

Narama                                                                                          2,177                -

Ravensworth East                                                                                1,511                -

Warkworth                                                                                       5,691                -

Total                                                                                          35,951           12,974



Coal & Allied equity share of production

Hunter Valley Operations (100%)                                                                12,243            8,585

Mount Thorley Operations (80%)                                                                  3,638            3,511

Bengalla (40%)                                                                                  1,958                -

Moura (55%)                                                                                     2,689                -

Narama (50%)                                                                                    1,089                -

Ravensworth East (100%)                                                                         1,511                -

Warkworth (55.57%)                                                                              3,163                -

Total                                                                                          26,291           12,096



Shipments by market 1

Japan                                                                                          17,771            6,636

Asia (excluding Japan)                                                                          8,204            4,457

Europe                                                                                          1,193            2,059

Other                                                                                           1,152                -

Domestic                                                                                        7,393                -

Total                                                                                          35,713           13,152



Shipments by product 1

Export thermal                                                                                 18,701            6,936

Domestic thermal                                                                                7,393                -

Coking                                                                                          9,197            6,216

Hard coking                                                                                       422                -

Total                                                                                          35,713           13,152



Financials                                                                                  $ million        $ million

Total assets                                                                                    2,539            1,005

Capital expenditure and investments                                                               939              265
Depreciation and amortisation 3                                                                   152               66
Employees                                                                                       1,953            1,032
Net debt to total capital (%)                                                                     61%              25%
Earnings per share (cents)                                                                     245.4c           142.7c

Notes:
2000 comparative information does not include the effect of the Lemington and Peabody acquisitions.

2001 information for assets acquired from Peabody are for the 11 months since acquisition

1 Shipments are on a 100% basis and exclude purchased coal.

2 Production is on a 100% basis.

3 Depreciation and amortisation includes amortisation of mining rights relating to Lemington and Peabody mines.



                      This information is provided by RNS
            The company news service from the London Stock Exchange