Rio Tinto Iron Ore expansion

Rio Tinto PLC
24 June 2004

New contracts further underpin Rio Tinto Iron Ore expansion


Rio Tinto Iron Ore today announced that it has entered into long term sales
contracts to supply an additional 40 million tonnes a year of iron ore to
leading Chinese steel mills.


Under these new contracts, Hamersley Iron (Rio Tinto 100 per cent) will supply
more than 30 million tonnes and the Robe River Joint Venture (Rio Tinto 53 per
cent) ten million tonnes a year.  The contracts, which have an average duration
of ten years, will reach their stated volumes following the completion of the
current expansion program at the end of 2005.


The sales arrangements are in addition to the long term contract signed in April
2004 between Rio Tinto Iron Ore and Shanghai Baosteel Group Corporation for the
supply of seven million tonnes a year of product over ten years.


Rio Tinto Iron Ore chief executive Chris Renwick said, 'These new agreements
mean that from 2006, Hamersley Iron will have a total of around 70 million
tonnes a year of product locked into long term arrangements with Chinese steel
mills through joint ventures or long term contracts.  Robe River will have 15
million tonnes a year under long term contracts to China. Together with ongoing
sales into traditional markets, these new arrangements will strongly underpin
our current expansion. They also serve to provide our Chinese customers with
security of supply and further strengthen our long standing relationships in
this key market.'


In December 2003, Rio Tinto approved the expansion of Hamersley Iron's Dampier
port and Yandicoogina mine operations and, in conjunction with its joint venture
partners, Robe's West Angelas mine.  Since then Rio Tinto Iron Ore has approved
further expenditure on new and expanded rail and power infrastructure, bringing
its share of total new investment to more than US$1.1 billion.



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