ERA 2003 Annual results

Rio Tinto PLC
29 January 2004


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 annual results 2003

                                                            Year ended          Year ended            Change
                                                      31 December 2003         31 December
                                                                                      2002

Revenue ($ million)                                              197.3               199.2              (1%)

Earnings before interest and tax ($ million)                      35.3                39.2             (10%)

Net profit after tax ($ million)                                  19.9                21.2              (6%)

Total dividends (cents per share)                                 11.0                11.0                 -

U3O8 production (tonnes drummed)                                 5,065               4,470               13%

U3O8 sold tonnes    - Ranger material                            5,241               4,517

                    - purchased material                            18                 628


Total tonnes U3O8 sold                                           5,259               5,145                2%


During 2003, ERA achieved record production of uranium oxide and gained
certification under ISO 14001 for its environmental management system.


Profit

ERA recorded a net profit after tax of $19.9 million for the year ended 31
December 2003 compared with a profit of $21.2 million for the same period in
2002.


The impacts of record annual production from the Ranger mine and improved prices
for uranium were offset by the impact of the strengthening Australian dollar,
increased operating costs at Ranger and one-off care and maintenance costs at
Jabiluka.


Cashflow

The net operating cashflow of $45.8 million (2002: $108.2 million) was lower
than 2002 due to a combination of an increase in inventory, payment of prior
years' income tax assessments and the effect of the strengthening Australian
dollar on sales.


Revenue for the year ended 31 December 2003 was $197.2 million (2002: $199.2
million). The Company settled US$49 million (2002: US$60 million) of forward
exchange contracts during the year. Settlement of forward exchange contracts
combined with the strengthening $A: $US exchange rate resulted in an effective
exchange rate for the period of 66.6 cents as compared to the 2002 rate of 60.0
cents. The strengthening Australian dollar has negatively impacted revenue by
approximately $20 million.


Dividends

ERA Directors declared a final dividend for the year of 5.0 cents per share,
fully franked at 30 per cent.  The record date for the dividend is 13 February
2004 and it will be paid on 27 February 2004. This is in addition to the interim
dividend paid in August 2003 of 6.0 cents per share, giving total dividends paid
to shareholders for the year of 11.0 cents per share, fully franked (2002: 11.0
cents per share).


Sales

Sales for 2003 were 5,259 tonnes including 18 tonnes of third party stock (2002:
5,145 tonnes including 628 tonnes of third party stock). ERA's contractual sales
price is influenced by the spot market. As at 31 December 2003 the spot market
price was US$14.40 per pound (31 December 2002: US$10.20 per pound).


Operations

Drummed production for the year was 5,065 tonnes U3O8, a record for the company
(2002: 4,470 tonnes). The increase in production meant that no third party
purchases were required to meet the Company's sales commitments, although 408
tonnes U3O8 were purchased for inventory holding purposes.


Other Matters

On 24 December 2003 the Full Court of the Federal Court dismissed the
Commissioner of Taxation's appeal against the decision handed down on 28 January
2003 in the Commissioner of Taxation v Energy Resources of Australia Limited.
The Commissioner has lodged an application to the High Court for special leave
to appeal the case.


If the special leave to appeal is not granted, or the appeal should be
unsuccessful, the effect will be an increase to ERA's net profit by
approximately $10.3 million.  The cash flow of the Company will benefit from a
tax refund of approximately $6.5 million.


Outlook

ERA expects sales in 2004 to be at a similar level to 2003.  ERA has developed a
strong forward order book in the short to medium term and retains the
flexibility to take advantage of an improving market and improving forecast
prices. ERA's practice of having a geographically diverse contract portfolio
with a strong customer focus will ensure steady revenue performance in future
years.


Foreign currency hedges due to mature in 2004 amount to US$47 million at an
average rate of 64 US cents.


ERA continues to seek ways of improving productivity, including the introduction
of the EDI (Employees Driving Improvement) program, launched in late 2003.


For further information, please contact:

LONDON                                               AUSTRALIA

Media Relations                                      Media Relations

Lisa Cullimore                                       Ian Head

Office:  [phone]                        Office:  [phone]

Mobile: [phone]                         Mobile: [phone]

Investor Relations                                   Investor Relations

Peter Cunningham                                     Dave Skinner

Office:  [phone]                        Office:  [phone]

Mobile: [phone]                         Mobile: [phone]

Richard Brimelow                                     Daphne Morros

Office:  [phone]                        Office:  [phone]

Mobile: [phone]                         Mobile: [phone]

Website: www.riotinto.com


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