Rio Tinto Zimbabwe Results

Rio Tinto PLC
17 August 2001


Rio Tinto Zimbabwe Ltd, which is 56 per cent owned by Rio Tinto,
issued the following locally today.  All dollars are Zimbabwean
except where otherwise shown.
                                 
                                 
       Rio Tinto Zimbabwe Limited Statement to Shareholders


The Group's unaudited results for the half year ended 30 June 2001
on a historical cost basis were as follows:

                                     Historical Cost
Profit And Loss Statement   30-Jun-01   30-Jun-00    31-Dec-00
                              $000         $000        $000
Group turnover                 959 940     658 756    1 655 127
Cost of sales                (862 542)   (642 218)  (1 475 447)
Operating profit before         97 398      16 538      179 680
depreciation
Depreciation                  (40 775)    (30 797)     (63 747)
Profit before interest          56 623    (14 259)      115 933
Net interest (payable)        (10 316)       8 987      (8 567)
receivable
Profit before taxation          46 307     (5 272)      107 366
Taxation                      (20 394)       2 464       18 741
Profit after taxation           25 913     (2 808)      126 107
Dividends payable                    0           0            0
(proposed)
Earnings per share                 115        (13)          561
(cents)
Dividends per share                  0           0            0
(cents)
Interim (cents)                      0                        0
Final   (cents)                      0                        0
Number of shares in issue           22          22           22
(millions)
                                                               
Abridged Balance Sheet
Shareholders' funds            735 343     581 037      709 430
Deferred tax                   130 048     145 750      129 709
Long term provision             63 120      42 000       55 000
Mine closure provision         112 760      78 150      100 000
Medium and long term debt        5 839       5 839        5 839
Total funds employed         1 047 110     852 776      999 978
Represented by:                                                
Fixed assets, exploration      787 384     653 822      755 107
and development
Investments                     83 666      82 282       83 446
Current assets                 746 044     501 504      692 925
Current liabilities            569 984     384 832      531 500
Net current assets             176 060     116 672      161 425
Total net assets employed    1 047 110     852 776      999 978
                                                                  
                                                        
RESULTS

Gold production at 1 130 kg was 96 kg higher than that recorded in
the  first half of 2000.  Renco and the Cam Dump operated well but
Patchway struggled to maintain a satisfactory grade.

The  breakthrough made by the refinery in March saw the end of the
copper  production  problems which had plagued the  operation  for
over  a  year and the restoration of normal, efficient  production
took place during the second quarter.

The  average gold price on the international market was US$268 per
ounce,  US$18  less than the average for the first half  of  2000.
The  gold support price of $18 865 per ounce was introduced during
April  and as a result the average Zimbabwe dollar price  received
was  $16  172  per  ounce, equating to US$294  per  ounce  at  the
official  exchange rate of $55 per US$.  The average of  $519  936
per  kg  received was 49% higher than the $349 000 per kg received
in the same period last year.

Profit  before  tax at $46,3 million compared to a  loss  of  $5,3
million in the same period last year and represented a significant
turnaround  from  the$30  million loss  announced  for  the  first
quarter.   The turnaround resulted from improved cost control  and
operating performance and the increased local gold price.

EXPLORATION

Several kimberlite dykes and two small pipes have been discovered.
These   results  confirm  the  effectiveness  of  the  exploration
methods.   Investigation  of  other  anomalies  is  in   progress.
Expenditure by the joint venture was $53,2 million with Rio  Tinto
Zimbabwe Limited responsible for 50%.

MUROWA

By  quarter  end  the  land  use plan for  resettlement  had  been
produced and presented to the relevant authorities.  Progress  was
slower than had been hoped for despite much support.  Commencement
of  the  resettlement process during the second half of  the  year
appears feasible.  Financing options are being investigated.

OUTLOOK

The  Cam Dump closed at the end of June but the impact of this  on
the  second  half  results will be minimal.  The  refinery  should
operate  effectively, reducing the backlogs which built up  during
the operation's problems.  However toll refining revenues will  be
affected by the recent dramatic declines in both nickel and copper
prices on the London Metal Exchange.

Even  with some turmoil in the world economy prospects for a  rise
in the gold price appear poor.

In  the second half, as in the last few years, the fortunes of the
company  will  be  directly affected by  exchange  rates,  whether
embodied in a review of the gold support price or directly in  the
official  and parallel market rates.  The impact of exchange  rate
movements,  or  lack  of them, on operations is  significant.   In
these circumstances it is difficult to plan realistically for  the
future.

DIVIDEND

The  Directors  consider it imprudent to pay an  interim  dividend
against   the  current  uncertain  background  to  the   company's
activities and the impending capital projects.

HYPERINFLATION

The  Board has noted the varied responses of companies to the  use
of  IAS29.  In view of present moves to reconsider and rationalise
approaches to use of the Standard these interim results  are  only
of a historic nature.  The matter will be further addressed in the
annual results.



For further information, please contact:

   LONDON                         AUSTRALIA
   Media Relations                Media Relations
   John Hughes                    Ian Head
   + 44 (0) 20 7753 2331          [phone]
   Investor Relations             Investor Relations
   Jonathan Murrin                Dave Skinner
   + 44 (0) 20 7753 2326          [phone]
                                  Daphne Morros
                                  [phone]
                                  
Website: www.riotinto.com