Offer Update

Rio Tinto PLC
3 August 2000


                   RIO TINTO LIFTS NORTH BID TO A$4.75 AND                    
                                                                              
                         DECLARES OFFER UNCONDITIONAL                         

 
Rio Tinto announces a significant increase in its Offer for North Limited to
A$4.75 per share. Rio Tinto has also declared the Offer unconditional and
will shorten payment terms.
 
Rio Tinto intends to pay accepting shareholders within three business days of
valid acceptances being received. The Offer is due to close at 7.30pm
Australian Eastern Standard Time on Monday, 14 August 2000.
 
The Offer of A$4.75 represents a 62 per cent premium over the price at which
North shares were trading on the day prior to Rio Tinto announcing its first
Offer and is well within the valuation range assessed by North's independent
expert, Grant Samuel. Accordingly, Rio Tinto expects to receive the
endorsement of the North Directors.
 
The increased Offer follows a detailed review of North's Target Statement,
which included discussions with North executives.
 
'This Offer represents an attractive price for North's shareholders and is
value enhancing for Rio Tinto shareholders,' said Rio Tinto Chairman Sir
Robert Wilson.
 
'The long-term interest of both producers and customers is best served by an
efficient industry. Consistent with this, our bid for North is motivated by
the opportunity to pursue capital and operating cost synergies.
 
'The availability of synergies unique to Rio Tinto make us the logical
acquirer of North.
 
'There have been suggestions that the Japanese joint venture partners in Robe
River would frustrate Rio Tinto's ability to achieve the synergies relating
to the railway. While this is a possibility, it would be to the disadvantage
of supplier and customer alike, and we believe that the economic merits of
our proposal will be recognised.
 
'The intervention of Anglo American with support from some customers has
raised the wider concern of industry destabilisation through the long-term
creation of excess capacity. We believe the revised bid is important for the
sustained performance of our business,' said Sir Robert.
 
Rio Tinto's Offer of A$4.75 represents a significant increase over the Anglo
American offer of A$4.20 per share plus a five cent dividend to be paid by
North. Anglo's offer documentation has not been lodged and its offer is not
yet open for acceptance. Anglo's offer is also subject to a number of
conditions, including approval from the Foreign Investment Review Board.
 
Rio Tinto's Notice of Variation is being dispatched to North shareholders.
North shareholders may accept the Offer by using either the acceptance form
sent out with Rio Tinto's earlier Offer or by using the additional acceptance
form being sent to shareholders. Shareholders who have already accepted the
earlier Offer do not have to do anything, as they will receive automatically
the higher price.
 
Details of the revised Offer and how to accept it are available on the Rio
Tinto website at www.riotinto.com. 
 
 
For further information, please contact:
     
Media Relations                   Investor Relations 
 
Lisa Cullimore                    Peter Jarvis
+ 44 (0) 20 7753 2305             + 44 (0) 20 7753 2401
 
Website: www.riotinto.com