Lochaber plant modernisation

Rio Tinto PLC
30 January 2008



£45 million investment secures future of Scottish Highlands aluminium industry

30 January 2008



Rio Tinto Alcan has announced a £45 (US$90) million investment in the
modernisation of its Lochaber plant, in Scotland. The modernisation project will
see new hydroelectric turbo-generators installed to power the smelter, ensuring
the increased use of clean renewable energy for aluminium production at the
plant. The modernisation project is set to begin in 2009 and should be completed
by 2012.

'The £45 million investment to power our Lochaber plant not only secures its
future but shows our commitment to improving energy efficiency, increasing our
usage of fully renewable energy and in turn, our levels of production,' said
Jacynthe Cote, Rio Tinto Alcan Primary Metal President. '36% of our smelter
energy needs are met by clean, self-generated hydroelectricity, a tremendous
competitive advantage.'

The existing hydro generators at the Lochaber aluminium plant have been in use
since their installation in 1929. The new modern hydroelectric generators will
have an enhanced capacity to generate the electricity the plant needs, as well
as the potential to generate additional power.  As a result of the increased
power generation, it is expected that aluminium production at Lochaber will
increase from 43,000 tonnes per year to 50,000 tonnes per year.

'Making aluminium with hydroelectricity has been a vital part of the Highlands
economy for over 100 years, with generations of families having worked in the
industry, so we're delighted to confirm a long-term and sustainable future for
the plant today,' said Wyn Jones, Alcan Aluminium UK Managing Director. 'Today's
announcement underlines the company's commitment to remain an integral part of
the Lochaber community and to continue to produce high quality competitive
products in Scotland.'

The Rio Tinto Alcan plant in Lochaber contributes over £8 million a year to the
Highlands economy and employs 180 people, making it one of the Highlands'
largest private sector employers.  It also helps underpin an additional 400 jobs
through indirect employment and supply chain opportunities.  This repowering
project will offer much needed long-term job security in the region.

John Hutton, Secretary of State, Business, Enterprise & Regulatory Reform
commented: 'I welcome the announcement of this investment in Rio Tinto Alcan's
Lochaber aluminium smelter. I am aware of the importance of the smelter to the
region and the investment will also make a valuable contribution to helping us
meet our renewable energy targets.'

Rio Tinto Alcan, created in November 2007, is the global leader in aluminium. It
holds the number one position in bauxite and aluminium production and is a major
producer of alumina, with a clear pathway to the top through its options for
expansion.




About Rio Tinto


Rio Tinto is a leading international mining group headquartered in the UK,
combining Rio Tinto plc, a London listed company, and Rio Tinto Limited, which
is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major
products are aluminium, copper, diamonds, energy (coal and uranium), gold,
industrial minerals (borax, titanium dioxide, salt, talc) and iron ore.
Activities span the world but are strongly represented in Australia and North
America with significant businesses in South America, Asia, Europe and southern
Africa.



Forward-Looking Statements


This announcement includes 'forward-looking statements' within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical facts included in this announcement, including, without
limitation, those regarding Rio Tinto's financial position, business strategy,
plans and objectives of management for future operations (including development
plans and objectives relating to Rio Tinto's products and production forecasts),
are forward-looking statements. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Rio Tinto, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Rio
Tinto's present and future business strategies and the environment in which Rio
Tinto will operate in the future. Among the important factors that could cause
Rio Tinto's actual results, performance or achievements to differ materially
from those in the forward-looking statements include, among others, levels of
actual production during any period, levels of demand and market prices, the
ability to produce and transport products profitably, the impact of foreign
currency exchange rates on market prices and operating costs, operational
problems, political uncertainty and economic conditions in relevant areas of the
world, the actions of competitors, activities by governmental authorities such
as changes in taxation or regulation and such other risk factors identified in
Rio Tinto's most recent Annual Report on Form 20-F filed with the United States
Securities and Exchange Commission (the 'SEC') or Form 6-Ks furnished to the
SEC. Forward-looking statements should, therefore, be construed in light of such
risk factors and undue reliance should not be placed on forward-looking
statements. These forward-looking statements speak only as of the date of this
announcement. Rio Tinto expressly disclaims any obligation or undertaking
(except as required by applicable law, the City Code on Takeovers and Mergers
(the 'Takeover Code'), the UK Listing Rules, the Disclosure and Transparency
Rules of the Financial Services Authority and the Listing Rules of the
Australian Securities Exchange) to release publicly any updates or revisions to
any forward-looking statement contained herein to reflect any change in Rio
Tinto's expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.

Nothing in this announcement should be interpreted to mean that future earnings
per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed
its historical published earnings per share.

Subject to the requirements of the Takeover Code, none of Rio Tinto, any of its
officers or any person named in this announcement with their consent or any
person involved in the preparation of this announcement makes any representation
or warranty (either express or implied) or gives any assurance that the implied
values, anticipated results, performance or achievements expressed or implied in
forward-looking statements contained in this announcement will be achieved.





For further information, please contact:

Media Relations, London                 Media Relations, Australia

Christina Mills                         Ian Head

Office: [phone]            Office:  [phone]
Mobile: [phone]
                                        Mobile: [phone]


Nick Cobban
                                        Amanda Buckley
Office:  [phone]
                                        Office:  [phone]
Mobile: [phone]
                                        Mobile: [phone]


Rio Tinto Alcan, Lochaber

John McCabe

Office: [phone]

Mobile: [phone]



Rio Tinto Alcan Media Relations,
Montreal

Stefano Bertolli

Tel.: [phone]

[e-mail]



Media Relations, US

Nancy Ives

Mobile: [phone]

Investor Relations, London              Investor Relations, Australia

Nigel Jones                             Dave Skinner

Office: [phone]            Office:  [phone]

Mobile: [phone]            Mobile: [phone]



David Ovington                          Simon Ellinor

Office:  [phone]           Office:+ 61 (0) 7 3867 1068

Mobile: [phone]

Investor Relations, North America

Jason Combes

Office:  [phone]

Mobile: [phone]


Email: [e-mail]


Websites: www.riotinto.com   www.riotinto.com/riotintoalcan



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