Coal & Allied Interim Results

Rio Tinto PLC
24 July 2002



                                        Coal & Allied 2002 Half year results


FINANCIAL SUMMARY

•        Net profit after tax for the first half of 2002 was $104.7 million, compared with  $79.5 million in the same
         period last year.

•        Net debt reduced by $561 million resulting in gearing of 41%, down from 61% at 31 December 2001.

•        Interim dividends of 40 cents per ordinary share and 1.75 cents per preference share, both fully franked, were
         declared.


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


'This was a good first half result with the benefits of acquisitions and
integration continuing to flow through. It will help Coal & Allied weather the
tougher conditions that are resulting from lower contract prices and current
market oversupply.



'In anticipation of weaker market conditions in the second half of the year, we
will reduce output from Hunter Valley Operations by about one million tonnes to
bring our production into line with market demand,' said Coal & Allied's
Managing Director, Mr Gary Goldberg.



'Our safety performance has continued to improve with a 63% reduction in the
lost time injury frequency rate since the start of the year.  This reflects our
commitment to achieving zero injuries in the workplace.'



'We completed the sale of the Ravensworth/Narama business and our interests in
the Moura operation, for a total of $420 million (US$230 million), and used the
proceeds to reduce debt.'



'The integration of the Mount Thorley and Warkworth mines is progressing well
with work continuing on valuations, mine planning and a common aligned
workforce.  I expect this process to be completed in 2003, subject to obtaining
agreement from joint venture partners,' said Mr Goldberg.




SUMMARY OF FINANCIAL PERFORMANCE



Coal & Allied's results for the first half of 2002 are shown below, along with
comparative results for 2001.


                                                                          Half year to 30 June          Change

                                                                         2002            2001           %

Sales revenue ($ millions)                                               674.6           642.7          +5
Net profit after tax ($ millions)                                        104.7           79.5           +32
Operating cash flow ($ millions)                                         175.3           166.9          +5
Dividends (cents per share)                                              40              35             +14
Coal production1 (million tonnes)                                        17.9            16.9           +6
Coal shipments1 (million tonnes)                                         17.2            17.2           -


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




Sales revenue

Sales revenue of $674.6 million was up 5% compared with the first half of 2001,
reflecting the change in product mix to a greater proportion of export thermal
coal following the sale of the Ravensworth/Narama complex during the first half.
  Sales revenue was also higher as a result of six months contribution from the
Bengalla and Warkworth joint ventures acquired in 2001, compared with only five
months in the first half of last year.



Production

Managed production of saleable coal was up by one million tonnes to 17.9 million
tonnes.  Excluding operations divested in the first half of 2002 (Moura and
Ravensworth/Narama) managed production was 14.8 million tonnes.  On an
annualised basis, excluding Moura and Ravensworth/Narama, Coal & Allied is
entitled to approximately 22.4 million tonnes of saleable coal.



Dividends

Directors declared interim dividends of 40 cents per ordinary share and 1.75
cents per preference share, both fully franked.  This compares with fully
franked interim dividends of 35 cents per ordinary share and 1.75 cents per
preference share for the first half of 2001.



The interim dividend will be paid on 22 August 2002 to shareholders registered
at close of business on 15 August 2002.



Following payment of this interim dividend, there are $221 million of available
franking credits at a tax rate of 30%.



Cash flow

Net operating cash flow was $175.3 million, a 5% increase from the first half of
2001.   This figure reflects additional sales from the Bengalla and Warkworth
joint ventures, improved working capital and lower financing costs, offset
partly by higher tax payments.



Debt

Proceeds from the sales of Ravensworth/Narama and Moura were used to repay debt,
which decreased to $582 million.  Gearing (Net Debt to Net Debt plus Equity) was
40.8% at 30 June 2002.



Capital expenditure

Total capital expenditure for the first half of 2002 was $62.1 million including
the cost of new pit development and the purchase of a new shovel at Hunter
Valley Operations.  Capital expenditure for the same period last year was $72.6
million including the purchase of an additional 11.82% interest in the Warkworth
Mining Joint Venture.



REVIEW OF OPERATIONS

In this Review of Operations, percentages in brackets below represent Coal &
Allied's equity interest.



Hunter Valley Operations (100%)

The safety performance at Hunter Valley improved significantly with a 62%
decrease in the total number of injuries for the first six months of 2002
compared with 2001.  Saleable production in the same period increased from 5.1
million tonnes to 6.4 million tonnes.  The increase resulted from extending
7-day production across the operation and progress on new pit developments.



Mount Thorley Operations (80%)

Safety at Mount Thorley Operations improved dramatically with a 64% reduction in
the total number of injuries in the first half of 2002 compared with 2001.  The
Mount Thorley open cut mine produced 2.3 million tonnes of soft coking and
thermal coal during the first half of 2002, a similar level to the same period
last year.



Warkworth (55.57%)

There was a marked improvement in safety performance at Warkworth, with a 67%
reduction in the total number of injuries during the first half of this year
compared with 2001.   Production for the first half of 2002 of 3.4 million
tonnes was affected by equipment availability due to major planned maintenance
being brought forward from the second half of 2002.



Bengalla (40%)

There was a slight decrease in safety performance at Bengalla for the first
period of 2002 compared with 2001.  Bengalla produced 2.6 million tonnes in the
first six months of 2002.



Mount Pleasant

Investigation of the development of the Mount Pleasant resource in conjunction
with the adjacent Bengalla operation continued.



Employee relations

In May, Coal & Allied reached agreement on the terms for settlement of the long
running actions before the Australian Industrial Relations Commission, which
followed the retrenchment of 190 former employees from the former Hunter Valley
# 1 and Mount Thorley mines in 1998 and 1999.



Coal & Allied will make a total payment of approximately $25 million to the
former employees for full and final settlement of these claims.



Mount Thorley Operations defended an action for unfair contracts brought against
it by 14 former staff retrenched in 1997.  The NSW Industrial Relations
Commission dismissed the applications, with costs awarded to the company.



Market conditions

Increased coal shipments from China and Indonesia, together with increased
reliance by Asian buyers on spot or short-term sales, had a significant effect
on the thermal coal market.



Spot prices fell during the first half, leading to a reduction in contract
prices for thermal coal of about 10% and about 7% for semi-soft coking coal.  As
a result of the weaker market for thermal coal, production from Hunter Valley
Operations will be reduced by about one million tonnes for 2002.



Coal & Allied remains optimistic about the long term outlook for the market for
thermal coal but recognises the need to respond to short term fluctuations.



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]
Richard Brimelow                                        Daphne Morros
+ 44 (0) 20 7753 2326                                    [phone]



Website: www.riotinto.com





Coal & Allied Financial and Operating Statistics
                                                                            2002 half year               2001 half year
Production and shipments                                                       '000 tonnes                  '000 tonnes


Total shipments 1                                                                   17,211                       17,202


Total saleable production 2

Hunter Valley Operations                                                             6,431                        5,136

Mount Thorley Operations                                                             2,278                        2,022

Bengalla                                                                             2,640                        2,367

Warkworth                                                                            3,377                        2,909

Narama3                                                                                370                        1,168

Ravensworth East3                                                                      387                          668

Moura4                                                                               2,400                        2,586

Total                                                                               17,883                       16,856



Coal & Allied equity share of production

Hunter Valley Operations (100%)                                                      6,431                        5,136

Mount Thorley Operations (80%)                                                       1,822                        1,618

Bengalla (40%)                                                                       1,056                          947

Warkworth (55.57%)                                                                   1,877                        1,617

Narama (50%)                                                                           185                          584

Ravensworth East (100%)                                                                387                          668

Moura (55%)                                                                          1,320                        1,422

Total                                                                               13,078                       11,992



Shipments by product 1

Export thermal                                                                      10,468                        8,893

Domestic thermal                                                                     2,383                        3,323

Coking                                                                               4,360                        4,986



Total                                                                               17,211                       17,202



Financials
                                                                                      2002                         2001

                                                                                 $ million                    $ million



Total assets                                                                         1,985                        2,461

Capital expenditure and investments                                                     62                           73
Depreciation and amortisation 5                                                         69                           76
Employees                                                                            1,542                        2,324
Net debt to net debt plus equity (%)                                                  40.8                         65.8
Earnings per share (cents)                                                           121.4                         91.8



1 Shipments are on a 100% basis and exclude purchased coal.
2 Production is on a 100% basis.
3 Coal & Allied's interest in Ravensworth/Narama was sold effective 14 March 2002.
4 Coal & Allied's interest in Moura was sold effective 24 May 2002.
5 Depreciation and amortisation include amortisation of mining rights relating to Lemington and Peabody mines.
6 In 2002 Ravensworth/Narama, Moura and Eroc excluded.






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