Coal & Allied

Rio Tinto PLC
27 November 2006


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.


Mount Pleasant project enters next phase


Coal & Allied today confirmed its long term commitment to the Mount Pleasant
project with the commencement of a feasibility study into the project's
potential development.

The project (100 per cent Coal & Allied) is adjacent to the Bengalla Mine near
Muswellbrook in the Hunter Valley, New South Wales.

Coal & Allied managing director Douglas Ritchie said the feasibility study is
expected to take approximately 12 months to complete.

Mr Ritchie said Coal & Allied would undertake extensive community consultation
as part of the feasibility study.

'We have a long history in the Hunter Valley and we will continue to work with
the community to understand and manage our impacts and to implement programmes
which make a positive contribution, both in the short and long term,' he said.

'As part of our ongoing focus on sustainable development, all aspects of the
proposed operation would be considered to maximise energy efficiency, manage
water use and reduce impacts on our neighbours.'

Mr Ritchie said that a final decision was yet to be made on the future
development of the operation.

'The coal industry has a significant long-term role to play in the Hunter and
this project has been part of Coal & Allied's development portfolio for many
years.'

The Mount Pleasant project is a consented development.



Note to editors
     
1.   Coal & Allied recognises that there is a high level of public interest on 
     the issue of climate change and coal mining, particularly in the Hunter
     Valley.

2.   While all independent research has found coal is essential for energy 
     supply in the short to medium term, Coal & Allied recognises that coal will 
     need to be used differently in the future.

3.   Both Coal & Allied and its management company Rio Tinto Coal Australia,
     members of the Rio Tinto Energy product group, are long-term contributors 
     to a range of projects that support the research, development and 
     deployment of clean coal technologies. The latest initiative is the 
     voluntary contribution of funds to the COAL21 levy to support the 
     commercialisation of clean coal technologies.

4.   The work on clean coal technologies to date is just the beginning and is 
     one of the many actions that will need to be adopted to address climate
     change.

5.   As part of its business wide climate change action plan Coal & Allied is 
     also working to improve energy use at its operations, projects and the 
     supply chain.  Coal & Allied is designing its projects to recognise risks 
     from a changing climate and opportunities in a changing policy environment.

6.   More information on the Rio Tinto Energy Clean Coal Technology Programme 
     can be found at http://www.riotintocoalaustralia.com.au/sustainable/
     environmental-clean-coal.asp.


For further information, please contact:

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 Website: www.riotinto.com

High resolution photographs available at: www.newscast.co.uk




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