Energy Resources of Australia

Rio Tinto PLC
29 January 2003

Rio Tinto's 68.4 per cent owned subsidiary, Energy Resources of Australia,
issued the following news release in Australia today. All dollars are Australian
currency unless otherwise stated.


                       Energy Resources of Australia Ltd
                             Full year results 2002


                                                                 Year ended           Year ended           Change
                                                                31 December          31 December

                                                                       2002                 2001
Sales revenue ($ million)                                             198.7                161.3              23%
Earnings before interest and tax ($ million)                           39.2                 21.5              82%
Net profit after tax ($ million)                                       21.2                  8.1             163%
Total dividends (cents per share)                                      11.0                  5.0             120%
U3O8 production (tonnes drummed)                                      4,470                4,203               6%
U3O8 sold tonnes - Ranger material                                    4,517                4,022
                 - purchased material                                   628                  408
Total tonnes U3O8 sold                                                5,145                4,430              16%





ERA delivered a significantly improved result with net profit after tax of $21.2
million for the year ended 31 December 2002 compared with a profit of $8.1
million for the same period in 2001. The above results included exchange losses
after tax of $13.6 million for the year ended 31 December 2002 and $25.2 million
for the year ended 31 December 2001.

Higher sales volumes, the stronger uranium spot price, benefits flowing from the
company wide performance enhancement programme and lower interest costs
contributed to the increased profitability.

Strong sales revenue and a reduction in working capital contributed to the
strong cashflow for the year. Borrowings of $76 million as at 31 December 2001
were fully repaid during the year.

Dividends

ERA Directors today declared a final dividend for the year of 11.0 cents per
share, fully franked at 30 per cent. The record date for the dividend is 14
February 2003 and it will be paid on 28 February 2003.

No interim dividend was paid for the year.

Sales

Sales amounted to 5,145 tonnes U3O8 (2001: 4,430 tonnes U3O8). Sales revenue was
$198.7 million (2001: $161.3 million). Sales volumes are expected to remain
consistent and within the range of 4,800 - 5,200 tonnes U3O8 for 2003. The spot
price for uranium at 31 December 2002 was US$10.10lb compared with US$9.50lb at
31 December 2001.

Operations

Full year production (drummed) increased to 4,470 tonnes U3O8 (2001: 4,203
tonnes U3O8) in order to meet higher sales commitments during 2002 and into
2003. However production remained below the level of sales in order to optimise
inventory levels.

Other Matters

On 28 January 2003, a decision was handed down in the Federal Court of Australia
in Energy Resources of Australia Limited v Commissioner of Taxation. The
decision relates to the valuation of ERA's trading stock for the year ended 30
June 1993. The decision had the effect of reducing ERA's taxable income for the
year ended 30 June 1993. The time for the Commissioner to appeal the decision
has not expired. If the decision stands it could have the effect of increasing
ERA's after tax profit by approximately $9.7 million, resulting primarily from
adjustment to provisions against a possible negative result in the case. The
implications of this judgement are currently being assessed and this has not
been included in the financial results of the period. The cash flow consequences
will be immaterial.

Outlook

ERA has developed a strong forward order book in the short to medium term. It
retains flexibility to increase output in the medium to long term to take
advantage of an improving market and improving forecast prices. ERA's practice
of having a geographically diversified portfolio with a strong customer focus
will ensure enhanced revenue performance in future years.

Foreign currency hedges due to mature in 2003 amount to US$49 million at an
average rate of 64 US cents. This represents a significant reduction in the
level of hedges compared with 2001 and 2002 and at the current AUD/USD exchange
rate the level of hedge losses will be lower in 2003. In addition, lower
forecast debt levels during 2003 will result in lower interest costs. These
factors are expected to enhance profitability in the future.



For further information, please contact:


LONDON                                                  AUSTRALIA
Media Relations                                         Media Relations
Hugh Leggatt                                            Ian Head
+ 44 (0) 20 7753 2273                                   [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


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            The company news service from the London Stock Exchange