New HIsmelt Plant

Rio Tinto PLC
24 April 2002

        Commercial-scale HIsmelt plant to be built in Western Australia


Rio Tinto has announced that it will build an expanded A$400 million (US$208
million) HIsmelt plant at Kwinana in Western Australia.  The HIsmelt process is
a revolutionary new direct iron-smelting technology, developed largely by Rio
Tinto in Australia.



HIsmelt has the potential to:



•        Substantially increase demand for Australia's reserves of iron ore by
consuming the unsaleable higher phosphorous fines found in vast quantities in
the Pilbara. This will significantly enhance the competitiveness and value of
the Australian iron ore industry.



•        Encourage a cleaner steel industry as it does not require coke ovens
and sinter plants and produces less greenhouse gas per tonne of hot metal.  It
will provide cost effective steel making options for developing countries and
replacement for ageing plants in developed countries.



•        Meet the demand for new sources of iron metallics as feedstock for the
rapidly growing electric arc furnace industry, particularly in the higher growth
Asian region.



Chief Executive, Rio Tinto Iron Ore, Chris Renwick, said, 'Rio Tinto's decision
to build a commercial plant at Kwinana represents the culmination of an
intensive A$600 million Australian research and development program, conducted
over twenty years.  It is a significant step in the development of
new-generation technology for the world steelmaking industry.



Mr Renwick acknowledged support for the expansion project from both the Federal
and Western Australian Governments. This comprises A$50 million in initial
support funding through the Federal Government's Strategic Investment
Coordination process and the State's assistance in securing the land required
for the new plant.  Further stages of Federal funding up to a total of A$125
million are dependent on the success of commercialisation of the process and a
doubling of plant size.



There is also potential for further economically viable development such as the
construction of a steel plant at Kwinana. This could bring the total investment
in the new HIsmelt project to A$1.2 billion (US$625 million).



'The new HIsmelt plant will produce high quality iron at a lower cost and with a
superior environmental performance to any other iron-making process. It will
also allow Rio Tinto to use lower grade and lower value iron ore fines, such as
the higher phosphorous ores prevalent in the Pilbara.



'This development will strategically position Rio Tinto to benefit from the
global trend to electric arc furnace steel production, and the growing
replacement needs of traditional blast furnace steel makers,' Mr Renwick said.



The HIsmelt expansion project will operate as a joint venture between Rio Tinto
(60% through its subsidiary, HImet Corporation), US steelmaker Nucor Corporation
(25%), Mitsubishi Corporation (10%) and Chinese steelmaker Shougang Corporation
(5%).



The joint venture will construct the A$400 million plant at HIsmelt's existing
Kwinana site, with an annual capacity of up to 800,000 tonnes of high quality
pig iron (96% iron content). This location offers excellent port, rail and site
infrastructure, and local skills for the construction and operation of the
plant.



Construction is scheduled to begin in the fourth quarter of 2002, subject to
environmental and other statutory approvals.  The plant is expected be
commissioned in late 2004 and reach full production in the first half of 2006.



It will employ around 320 people at the peak of its two-year construction phase,
and will create up to 65 full time jobs when in operation.



For further information, please contact:


LONDON                                             AUSTRALIA
Media Relations                                    Media Relations
Lisa Cullimore                                     Ian Head
+ 44 (0) 20 7753 2305                              [phone]

Investor Relations                                 Investor Relations
Peter Cunningham                                   Dave Skinner
+ 44 (0) 20 7753 2401                              [phone]
                                                   Daphne Morros
                                                   [phone]


Website: www.riotinto.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange