KPC Civil Suit

Rio Tinto PLC
27 November 2001

                                KPC Civil Suit

The District Court of South Jakarta today summoned a number of the named
defendants in the civil suit filed by the East Kalimantan Regional Government
on 17 July 2001 regarding KPC's obligation to offer shares for sale to
Indonesian parties.

The claim has been made against KPC, its shareholders, some of its directors
and its legal advisers.

The East Kalimantan Regional Government is seeking damages of US$776 million.
This comprises $144m in respect of a share of KPC's past profits, $628m in
respect of a share of future profits to be earned over the next 10 years and
legal and travel costs of US$4 million.  The East Kalimantan Regional
Government has also requested seizure of KPC's and the other defendants'
assets.

KPC firmly believes that the claims are baseless and intends to defend them
vigorously to the full extent of the law.  The firm of Lubis, Santosa and
Maulana has been retained to act on behalf of KPC and its shareholders, and
the directors named in this case.

The following points are relevant to this matter:

*        KPC's operations in Indonesia are carried out under a contract
between KPC and the Government of Indonesia, as represented by the Minister of
Energy and Mineral Resources. The contract is known as the Coal Agreement.  As
a party to the Coal Agreement, the Central Government is fully aware of all
aspects of the divestment process.

*        The East Kalimantan Government has no legal standing to bring this
action because they are not a party to the Coal Agreement.

*        The District Court of South Jakarta does not have jurisdiction over
this case.  In accordance with Indonesian law, any dispute between parties in
an agreement must be resolved through arbitration if the agreement contains
such a clause, which is the case with the Coal Agreement between the
Indonesian government and KPC.

*        KPC has always acted in good faith in the matter of divestment and
has complied with the terms of the Coal Agreement. KPC has already made three
divestment offers to a number of Indonesian parties from 1998 through 2000.

*        In May this year,  KPC agreed to offer 51% of its shares for sale in
2001, instead of 44% as had been previously agreed with the Government.  The
Ministry of Energy and Mineral Resources and KPC are currently in the process
of determining the price for the 2001 offer.

*        Minister Purnomo has advised recently that he has approached
President Megawati and the Ministry of Finance for the necessary approvals to
proceed with the appointment of an independent valuer to represent the
Indonesian Government in this matter. This is a positive step forward toward
finalising the KPC share price for the 2001 divestment offer and is consistent
with the provisions of the Coal Agreement.

KPC remains committed to fulfilling all of its obligations under the Coal
Agreement and will continue to pursue the divestment process in an open and
transparent manner in full accordance with the process laid out in the Coal
Agreement.

For further information, please contact:


LONDON                                     AUSTRALIA
Media Relations                            Media Relations
Lisa Cullimore                             Ian Head
+ 44 (0) 7730 418 385                      [phone]
Investor Relations                         Investor Relations
Jonathan Murrin                            Dave Skinner
+ 44 (0) 20 7753 2326                      [phone]
                                           Daphne Morros
                                           [phone]



Website: www.riotinto.com


Attachments: Chronology of Events
KPC Share Offers
Chronology of Key Events

15 November  KPC seeks deferral of initial share offering due to restructuring
1995         of the Governments coal interests and publicly announced
             intentions to amend the Coal Agreement provisions.

January 1996 Series of deferrals granted in writing by the Director General of
- March 1998 General Mining of the Department of Mining and Energy.

16 June 1998 1998 Offer made to Timah, PTBA and PT Aneka Tambang for 23%.

22 February  1998 offer is closed.  No parties having taken up the offer.
1999

8 November   Offer price agreed for 1999.
1999

19 November  30% of KPC shares offered to a number of Indonesian parties.
1999

19 August    Offer for 1999 is closed.  No parties having taken up the offer.
2000

26 October   Price for 2000 offer agreed at meeting with Director General.
2000

15 December  KPC sends offer to Government for 2000.
2000

15 March     2000 offer is closed.  No parties having taken up the offer.
2001

15 March     KPC advises Director General of valuation $889m (100% basis) for
2001         2001 divestment offer.  Value of 51% assessed at $453 million.

16 July 2001 Meeting between Director General and KPC.  No agreement reached on
             price.

9 August     KPC brings Salomon Smith Barney team to brief Minister of Energy
2001         and Mineral Resources on outstanding valuation matters.

13-16 August Director General departmental team visits KPC operations at
2001         Sangatta for 3 days to review sales contracts and validate price
             forecasts.

23 October   KPC formally rejects government's latest suggested price of $320
2001         million for 51%.