Iron ore price settlement

Rio Tinto PLC
23 February 2005


Iron ore price settlement


Rio Tinto's 100 per cent owned Hamersley Iron today reached agreement with
Nippon Steel on prices for Hamersley lump, fine and Yandi iron ore deliveries
for the contract year commencing 1 April 2005.


•         The price of lump ore will increase by 71.5 per cent to US cents 78.77
per dry metric tonne unit.

•         The price of fine ore will increase by 71.5 per cent to US cents 61.72
per dry metric tonne unit.

•         The price of Yandi ore will increase by 71.5 per cent to US cents
58.02 per dry metric tonne unit.


Sam Walsh, chief executive of Rio Tinto Iron Ore, said, 'This price increase
reflects unprecedented demand for our products, driven by the continuing growth
in steel consumption, particularly in China.'


A comparison with 2004 prices, in US cents per dry metric tonne unit, is as
follows:


                               FY04                FY05      % change

Lump ore                      45.93                78.77        +71.5%
Fine ore                      35.99                61.72        +71.5%
Yandi ore                     33.83                58.02        +71.5%


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                                     Susie Creswell
Office:  [phone]                        Office:  [phone]
Mobile: [phone]                         Mobile: [phone]
Website: www.riotinto.com



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 per cent 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, iron ore prices are
generally denominated in US cents per dry metric tonne unit, reflecting a common
base per unit of iron content.

•         To compare prices on a 'per tonne' basis instead of an 'iron units'
basis, the following conversion can be used:

US$ price per tonne = US cents per dry metric tonne unit x iron content

Iron content for Hamersley fine and lump ore is 64 per cent and for HI Yandi 58
per cent.


                      This information is provided by RNS
            The company news service from the London Stock Exchange