ERA half year results 2003

Rio Tinto PLC
23 July 2003



ERA half year results 2003




                                             Six months ended 30 June  Six months ended 30 June      Change
                                                                 2003                      2002
Sales revenue ($million)                                         85.4                      71.6         19%
Earnings before interest and tax ($million)                      17.0                       9.1         87%
Net profit after tax ($ million)                                  9.7                       3.3        194%
U3O8 production (tonnes drummed)                                2,705                     1,863         45%



Rio Tinto's 68.4 per cent owned Energy Resources of Australia Ltd (ERA) today
recorded a net profit of $9.7 million (2002: $3.3 million) after tax for the
half-year ended 30 June 2003. The increase in net profit was primarily due to
increased sales of Ranger product. Sales volumes for the full year 2003 are
expected to be in line with 2002.



ERA settled US$34 million (2002: US$87 million) in forward exchange contracts
during the period. Settlement of forward exchange contracts, combined with the
strengthening $A:$US exchange rate resulted in an effective exchange rate for
the half of approximately 66.0 cents (64.5 cents in the previous corresponding
period). The Company has hedge contracts of US$15 million due to mature in the
second half of 2003. ERA did not enter into any new hedges during the period.
The impact of a one cent movement in the $A:$US exchange rate on after tax
profit is approximately $0.5 million.



As at 30 June 2003 the spot market price for U3O8 was US$10.83 per pound
compared with US$9.90 per pound at the end of June 2002.



Drummed production for the half year to 30 June 2003 was 2,705 tonnes U3O8
(2002: 1,863 tonnes U3O8). The second mill circuit continued to operate during
the period to meet ongoing sales commitments. Production for the second half of
2003 is expected to continue at current levels in line with sales commitments.



Dividends

ERA Directors today declared an interim dividend of six cents per share, (2002:
nil) fully franked at 30 per cent. The dividend will be paid on 29 August 2003
to those shareholders registered on 15 August 2003.



Community Relations

ERA's environmental capabilities continue to be strengthened, particularly in
relation to achieving compliance and accreditation with ISO 14001 - a world
standard for environmental management. The Company continued to involve
regulators and Aboriginal representatives to ensure stakeholder expectations are
understood, ERA's obligations are met and that the operations continue to have
no detrimental impact on the surrounding environment.



ERA is focusing on establishing better long-term relationships with the Mirrar
people who are the traditional owners of the Ranger and Jabiluka leases.



Discussions are underway with the Northern Land Council and the Gundjehmi
Aboriginal Corporation with a view to reaching an agreement on the long-term
care and maintenance of the Jabiluka site. The agreement seeks to establish a
care and maintenance regime that is environmentally, socially and economically
sustainable.



Market Outlook

The spot price for uranium rose from US$10.13 per pound at the beginning of the
year to US$10.83 per pound at the end of June 2003. No significant change is
anticipated in the demand and supply fundamentals in the short term.



ERA expects prevailing market conditions to be maintained, with the spot price
continuing to firm over the next few years.





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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