Offer for Labrador Iron Ore

Rio Tinto PLC
15 December 2000


Offer for Labrador Iron Ore Royalty Income Fund

Rio Tinto announced today that it intends to make a cash offer to purchase all
of the units of Labrador Iron Ore Royalty Income Fund (the Fund) for C$13.50 per
unit.  Taking into account the Fund's anticipated fourth quarter distribution,
this offer represents a premium of approximately 17 per cent to the average
closing price over the last ten trading days of C$11.85.  The total value of the
offer is C$405 million.

Leigh Clifford, Chief Executive of Rio Tinto, said, 'The acquisition of the Fund
will provide Rio Tinto the opportunity to consolidate its position in Iron Ore
Company of Canada (IOC) and this offer represents an opportunity for all the
Fund unitholders to realize a significant cash premium to the prevailing market
price for their units.'

The offer, which is being made through Rio Tinto's wholly owned subsidiary, Rio
Tinto Canada Inc., will be conditional upon at least 75 per cent of the units
being tendered to the offer and will be subject to customary conditions,
including the receipt of all regulatory approvals.

It is anticipated that the Fund Trustees will obtain, within the next four to
six weeks, an independent valuation of the Fund in accordance with the rules of
the Ontario Securities Commission. Rio Tinto will mail its offer document to
unitholders as soon as possible thereafter.

Rio Tinto is one of the world's leading mining groups with interests in a
diversified range of minerals and metals.  The Group has interests in 40
countries with around 40,000 employees.  Rio Tinto has a 56.1 per cent interest
in IOC, Canada's largest iron ore pellet producer.

The Fund is an unincorporated, limited purpose trust that, through its
wholly-owned subsidiary Labrador Mining and Exploration Company Limited, owns an
18.9 per cent equity interest in IOC.  In addition, the Fund is entitled to a 7
per cent royalty on all sales of IOC and a commission fee of C$0.10 per tonne on
all iron ore products sold by IOC.

For further information, please contact:

AUSTRALIA                                LONDON
Media Relations                          Media Relations
Ian Head                                 Lisa Cullimore
[phone] (office)             [phone]
[phone] (mobile

Investor relations                       Investor relations
David Skinner                            Peter Jarvis
[phone] (office)             [phone]
[phone] (mobile)

Daphne Morros
[phone] (office)
[phone] (mobile)             Website: www.riotinto.com