Iron ore price settlement

Rio Tinto PLC
21 May 2003


Iron ore price settlement

Hamersley Iron has today reached agreement with Japanese customers on prices for
Hamersley fine, lump and Yandi iron ore deliveries for the contract year
commencing 1 April, 2003.

The price of fine ore will increase by 9.00% to US cents 30.83 per dry long ton
unit.  The price of lump ore will increase by 8.90% to US cents 39.35 per dry
long ton unit.  The price of Yandi ore will increase by 9.00% to US cents 28.98
per dry long ton unit.
(See accompanying note).

A comparison with 2002 prices, in US cents per dry long ton unit, is as follows:


                             FY02                   FY03                % change

Fine ore                    28.28                  30.83                  +9.00%

Lump ore                    36.13                  39.35                  +8.90%

Lump premium                 7.85                   8.52

Yandi ore                   26.58                  28.98                  +9.00%

Notes:

• Iron ore is predominantly traded on the world market under long term contract.

• Contract years can differ from calendar years.

• The global reference price settlement is expressed as a percentage increase or 
  decrease from the previous year.

• The reference price is usually established for fines ore first because
  this represents 60% of the traded market.  Prices for lump and pellets are 
  then usually determined as a premium to the fines ore price.

• Once the annual percentage change is negotiated, Japanese iron ore
  prices are denominated in US cents per dry long ton unit, reflecting a common
  base per unit of iron content.

• In 2002, Hamersley exported 68.5 million wet metric tonnes of ore.

• Comparing prices is a somewhat complex process based on 'iron units'
  (not tonnes), often requiring lengthy conversions:

• To determine the US$ price per tonne, the conversion is: 

  US cents per dry long ton unit x Iron Content
  Iron content for Hamersley fine and lump ore is 64% and for HI Yandi 58%

• Dry long ton unit' is the imperial form of measurement - and can be
  converted to metric units and adjusted for moisture content of the ore when
  normally reporting tonnages;

• To convert quantities from dry long tonnes to dry metric tonnes,
  multiply dry long tons by 1.016;

• The moisture content of ores differs.


For further information, please contact:

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Website: www.riotinto.com

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