Magnetite sale update

Rio Tinto PLC
22 December 2004



Palabora Mining Company (Rio Tinto 49.2 per cent) issued the following statement
in Johannesburg today.


Magnetite sale update


As highlighted in the recent Business Update and Cautionary Announcement
released on 22 December 2004, Palabora's board has decided to pursue the sale of
its magnetite iron ore resource.  This decision was made after receipt of a
number of unsolicited proposals to acquire the resource.  Potentially interested
buyers will be contacted in February 2005.  Formal offers will be sought shortly
thereafter.


The resource, which is stockpiled at site, is currently estimated to contain
approximately 238mt grading 56 per cent Fe and 2.3 per cent TiO2.  Palabora is
currently undertaking further test work that is expected to support some further
simple processing to significantly enhance the resource quality.



Palabora has retained Cutfield Freeman & Co Limited, a London based independent
corporate finance company, to assist it with the review.





For further information, please contact:

LONDON                                               AUSTRALIA

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Investor Relations                                   Investor Relations
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Richard Brimelow                                     Susie Creswell
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Website: www.riotinto.com



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