Kennecott Utah Copper

Rio Tinto PLC
26 June 2003


Kennecott announces layoffs

Rio Tinto's wholly owned Kennecott Utah Copper (KUC) has announced that
approximately 120 hourly union represented operations and maintenance employees
will receive notice on Thursday and Friday (June 26-27) that they will be laid
off.

KUC President and CEO, Bill Champion, said, ' With continuing low prices, the
market for copper remains depressed and the industry continues to struggle.
Although we have signed a new labour contract that will help the Company improve
our competitive position within the industry, this previously anticipated layoff
is necessary if Kennecott is to secure a longer and more sustainable mining
future.  In early June, I communicated with all our employees regarding an
impending layoff.'   Champion added, 'This reduction in force has been driven by
business necessity and will result in operational changes throughout our plant
facilities.  It is unfortunate that we will lose some of our dedicated and
valued employees.'

Chris Crowl, KUC Vice President of Human Resources, said the employees will be
paid through July 5th and that the Company will provide outplacement services.
The Company is also reviewing salaried employee levels and contractor support,
he said.

Utah Copper's workforce has now been reduced to about 1425 employees because of
continuing low copper prices, which are compounded by current low levels of gold
and molybdenum production, and the cost pressures associated with an aging mine.
  More than 50 percent of America's copper mining operations are shut down, and
many of the nation's mines remain closed or operate at reduced levels.


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