Kennecott Energy Company

Rio Tinto PLC
17 January 2002



        Rio Tinto's successful bid expands Jacobs Ranch coal reserves



Rio Tinto's wholly owned US subsidiary, Kennecott Energy Company, has expanded
its Jacobs Ranch coal reserves in the Powder River Basin of Wyoming, USA,
following a successful bid of 70.6 cents per ton or $379.5 million for the
North Jacobs Ranch tract.



The North Jacobs Ranch tract contains 537.5 million tons of premium in-situ
coal reserves, comprising 515 million recoverable tons. The reserves will
extend the life of Kennecott Energy's Jacobs Ranch thermal coal mine from five
to twenty-three years at current production levels and will result in
operational efficiencies and expanded production.



Rio Tinto Energy Chief Executive, Mr Greg Boyce, said, 'The North Jacobs Ranch
tract underpins the longer-term future of the Jacobs Ranch mine, which we
bought in 1998 as a highly productive, low sulphur operation.



'This acquisition will further enhance Kennecott Energy's ability to meet the
growing demand for low sulphur, Powder River Basin coal.  The acquisition
gives the mine the ability to increase capacity up to approximately 40 million
tons, in line with market demand, while utilizing the existing
infrastructure,' Mr Boyce said.



The Jacobs Ranch mine is permitted to produce up to 50 million tons per year
and currently produces approximately 29 million tons of low sulphur compliant
coal per year for the US electricity market.  This additional reserve base
increases Kennecott Energy's share of 8800 Btu coal, which is currently
experiencing the fastest demand growth of all Powder River Basin coal types,
to 1.02 billion tons.



The Jacobs Ranch mine is located roughly 80 kilometres southeast of Gillette
in Wyoming.



Note: One short ton is equivalent to 0.907185 metric tonnes.





For further information, please contact:


LONDON                                          AUSTRALIA
Media Relations                                 Media Relations
Lisa Cullimore                                  Ian Head
+ 44 (0) 20 7753 2305                           [phone]
Investor Relations                              Investor Relations
Peter Cunningham                                Dave Skinner
+ 44 (0) 20 7753 2401                           [phone]
                                                Daphne Morros
                                                [phone]



Website: www.riotinto.com