Statement re HIsmelt

Rio Tinto PLC
28 August 2003

HIsmelt signs agreement for technology transfer into China



HIsmelt Corporation's affiliate Technological Resources Pty Ltd (wholly owned
subsidiaries of Rio Tinto) today signed a HIsmelt Process Licence with the Laiwu
Steel Group Ltd of China to allow for the development of an ironmaking facility
using world leading HIsmelt technology.



Through this agreement, Laiwu Steel plans to replicate the 800,000 tonnes per
year HIsmelt Plant currently under construction in Kwinana, Western Australia.
The new plant will be constructed at Laiwu City, Shandong Province, China.



Rio Tinto Iron Ore Chief Executive, Mr Chris Renwick, said the signing is a
further vote of confidence in HIsmelt, as it represents the first external
application of the HIsmelt process.



Mr Renwick said  'This agreement recognises the evolution of the HIsmelt
technology which has been developed and demonstrated by Rio Tinto in Australia
over the past ten years.



'It also reflects the growing awareness of the significant potential of the
HIsmelt process to revolutionise ironmaking and provide a premium metallic for
the global steelmaking industry.



'The agreement will be the first of many opportunities for the Chinese iron and
steel industry to take advantage of this new technology. More importantly, it
shows that the future is very bright for Australia's deeper economic
relationship with China.'



HIsmelt is a high intensity direct smelting process in which iron ore fines and/
or other iron containing materials and non-coking coals are injected directly
into a molten iron bath to produce a high quality iron product.



It is a potential replacement for the traditional blast furnace method of
ironmaking and a new source of low cost high quality iron units for the electric
arc steelmaking industry.



Construction of the Kwinana HIsmelt plant, which is owned jointly by Rio Tinto,
Nucor Corporation, Mitsubishi Corporation and Shougang Corporation, commenced in
January, with commissioning expected by the end of 2004.





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