Re Agreement

Rio Tinto PLC
2 July 2001

                                                                              
           Robe and Hamersley to share Pilbara rail infrastructure            
 
 
The Robe River joint venture partners have reached agreement to share rail
infrastructure with Hamersley Iron.
 
The agreement provides for joint use of iron ore rail infrastructure in the
Pilbara region of Western Australia and the establishment of the Pilbara Rail
Company, a 50:50 joint venture between Rio Tinto Iron Ore and Robe River Iron
Associates ('Robe').
 
Hamersley is a wholly owned subsidiary of Rio Tinto. Robe will continue as an
independent iron ore producer in the joint venture between Rio Tinto (53%),
Mitsui & Co (33%), Nippon Steel (10.5%) and Sumitomo Metal Industries (3.5%).
 
Under the agreement, the Pilbara Rail Company will operate and maintain the
rail assets of Hamersley Iron and Robe. The Pilbara Rail Company will rail
ore from mines in which Hamersley and Robe have an interest and will operate
both tracks, but Robe and Hamersley will continue to own their respective
rail assets. As well as providing rail system operational efficiencies, there
is provision for port sharing, subject to agreement on user terms.
 
The agreement will enable completion of the development of Robe's West
Angelas iron ore project, and will reduce the estimated capital cost from a
revised A$1,100 million to A$880 million.
 
Less rail construction is now required to bring the West Angelas project on
line, and will result in capital expenditure savings of approximately A$220
million. As part of the arrangements, the original planned 60-kilometre rail
spur to the West Angelas project will now be linked to Hamersley's main rail
line. In addition, the initial construction will include track connecting the
Hamersley and Robe systems where the lines currently crossover; and
approximately 50 kilometres of additional dual track on the busiest section
of Hamersley's main rail line. The additional dual track will increase the
efficiency of the rail network.
 
The establishment of the Pilbara Rail Company will occur after the necessary
Government approvals have been obtained and will end the legal action
launched by the Japanese participants last year. Once annual production at
West Angelas has reached 15 million tonnes, Robe's Japanese participants will
have an option to require completion of the balance of the West Angelas rail
line.
 
Rio Tinto Iron Ore chief executive, Mr Chris Renwick said, 'We are pleased to
have reached agreement with our joint venture partners on West Angelas so
that we can jointly realise the benefits of our new relationship and of the
West Angelas project.'
 
'Construction of the West Angelas mine site and port facilities is well
advanced, and we can now concentrate on putting the remaining elements of the
West Angelas development in place,' he said. 'I am confident that the
framework we have agreed will provide a successful model to realise further
opportunities for co-operation between the Robe Japanese participants and Rio
Tinto.'
 
Robe is expecting to ship first product from West Angelas early in the second
half of 2002
 
 
 
For further information, please contact:
 

                                                                  
              LONDON                     AUSTRALIA                
              Media Relations            Media Relations          
              Lisa Cullimore             Ian Head                 
              + 44 (0) 20 7753 2305      [phone]  
                                         Bruce Larson 
                                         [phone] 
              Investor Relations         Investor Relations       
              Peter Cunningham           Dave Skinner             
              + 44 (0) 20 7753 2401      [phone]      
                                         Daphne Morros            
                                         [phone]  
    
Website: www.riotinto.com