Coal & Allied Interim 2005

Rio Tinto PLC
29 July 2005


Rio Tinto's 75.7 per cent owned subsidiary, Coal & Allied Industries Limited,
issued the following news release in Australia. All dollars are Australian
currency.


Coal & Allied benefits from market conditions - 2005 half year results


SUMMARY


•  Net profit after tax was $126.4 million compared with $3.3 million for the 
   same period last year


•  Net debt has reduced in Australian dollar terms by 21 per cent in the first 
   half of 2005 to $203.7 million


•  An interim dividend of $1.10 will be paid on ordinary shares



Commenting on the company's performance, Coal & Allied's managing director, Dr
Grant Thorne said, 'This result reflects the strong global market for seaborne
traded coal in 2005.  Coal & Allied is now realising the opportunities
available, with the large majority of its contract business having been priced
under the much stronger market conditions that now prevail.'


Coal & Allied has declared a net profit after tax of $126.4 million.
Shareholders will be paid an interim dividend of $1.10 on ordinary shares.


'Production at all operations has been to the maximum consistent with the
restrictions imposed by the Capacity Balancing System operating through
Newcastle's coal loading terminal.  While there has been commitment to
increasing the future capacity of both port and rail, relief from the new
investment will not be felt before mid 2006,' Dr Thorne said.


'The strength of the Australian dollar continues to have a moderating influence
on results.  This, together with higher sea freight and other business inputs
reflecting buoyant industry conditions, will continue to impact earnings in the
second half of the year.'



All financial information contained in this release has been prepared on the
basis of the Australian Equivalents to International Financial Reporting
Standards and Interpretations.


SUMMARY OF FINANCIAL PERFORMANCE


Coal & Allied's results for the first half of 2005 are shown compared with
results for the comparative period of 2004.


                                                                                 Half-year ended 30 June
                                                                                     2005         2004

Sales revenue ($ millions)                                                          679.6         454.5
Net profit after tax ($ millions)                                                   126.4           3.3
Operating cash flow ($ millions)                                                    172.8          56.9
Dividends (cents per share)                                                           110           Nil
Coal production1 (million tonnes)                                                    14.0          13.6
Coal shipments1 (million tonnes)                                                     14.4          13.9


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


Sales revenue

Sales revenue of $679.6 million was 50 per cent more than for the comparative
period of 2004, reflecting higher prices.



Production

Managed production of saleable coal of 14.0 million tonnes was three per cent
more than in the first half of 2004.  This was limited by the allocation through
Port Waratah in Newcastle under the Capacity Balancing System.



Cash flow

Net operating cash flow of $172.8 million was 204 per cent more than the
corresponding period of 2004.  The increase was mainly the result of higher
priced coal.



Dividends

An interim dividend of $1.10 per ordinary share, fully franked, will be paid to
shareholders on 31 August 2005.  No interim dividend was paid on ordinary shares
in the first half of 2004.  A preference dividend of 1.75 cents per share, fully
franked, will be paid on 31 August 2005.

Debt

Net debt was lower at $203.7 million.  Gearing (net debt to net debt + equity)
was 21 per cent at 30 June 2005, compared with 44 per cent at 30 June 2004.



Capital expenditure

Total capital expenditure for the half year was $16.4 million compared with
$11.0 million for the same period last year.  Expenditure was predominantly for
major overhauls of draglines and rope shovels, and Mount Pleasant land
acquisitions.



Capacity Balancing System

Since the Capacity Balancing System was introduced to replace the Port
Allocation System through Port Waratah Coal Services, vessel arrivals have
generally matched the capacity of the port and rail network and demurrage costs
have been constrained to more acceptable levels.  However, there were 33 vessels
in the queue at the port of Newcastle at the end of June as producers scheduled
ship arrivals to safeguard their entitlement to port allocations for the
quarter.



Market conditions

The thermal coal market in the Asia Pacific region remains steady with prices
continuing in the US$50-52 per tonne price range.



For further information, please contact:

LONDON                                               AUSTRALIA

Media Relations                                      Media Relations

Lisa Cullimore                                       Ian Head

Office:  [phone]                        Office:  [phone]

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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


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