Madagascar project approved

Rio Tinto PLC
03 August 2005

Madagascar titanium dioxide project approved


Rio Tinto has announced the approval of a US$775 million titanium dioxide
project.  The project comprises a US$585 million mineral sands operation and
port in Madagascar and a US$190 million upgrade of Rio Tinto's ilmenite
facilities in Canada.

First production from the Madagascar operation in the Fort-Dauphin region is
expected in late 2008 and the initial capacity will be 750,000 tonnes per year
of ilmenite.

The ilmenite will be smelted at Rio Tinto's facilities at Sorel in Quebec. This
will require an upgrade of storage and handling facilities as well as their
associated ancillary services at the Sorel site.

Leigh Clifford, chief executive of Rio Tinto, said: 'This project will
consolidate Rio Tinto Iron & Titanium's position as a leading supplier in the
titanium dioxide feedstock industry.

'We have already demonstrated that we are committed to developing the project in
a manner consistent with the principles of sustainable development. Indeed, it
will be a model of the contribution mining can make through the successful
integration of financial, environmental and community objectives.'

The development is the largest project in Madagascar's history and will be the
catalyst for broader economic development of the country.  It is being developed
by QIT Madagascar Minerals (QMM), a Malagasy subsidiary of Rio Tinto (80 per
cent) and the Government of Madagascar (20 per cent).

Andrew Mackenzie, chief executive of Rio Tinto's Industrial Minerals product
group, said: 'The Madagascar project and Sorel upgrade will be excellent
additions to our titanium minerals business.

'With a grade of 60 per cent titanium dioxide, the Madagascar ore-body is the
largest known undeveloped high-grade ilmenite deposit. It has an expected mine
life of 40 years and will supply a new, high quality chloride slag with 91 per
cent titanium dioxide content, to meet the long-term demand for titanium dioxide
by the pigment industry.'

A deep sea multi-use public port at Ehoala, near the town of Fort-Dauphin, will
be an important component of the project. Rio Tinto's new ilmenite mine will be
a key initial customer of this facility, providing a base load business to help
establish the port. Over time, the port will make an important contribution to
economic development of the whole region.

The Government of Madagascar has agreed to contribute US$35 million to the
establishment of the port, as part of its Growth Poles Project funded by the
World Bank.

QIT Madagascar Minerals will manage the port operations. At the end of the life
of the mine, the port will fall under the responsibility and control of the
government of Madagascar.

For further information, please contact:

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Website: www.riotinto.com

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