Stmnt re Kaltim Prima Coal

Rio Tinto PLC
25 March 2002


             LEGAL ACTION AGAINST KPC PUTS DIVESTMENT PLANS AT RISK

KPC's previously announced agreement with the Government of Indonesia to offer
51% of KPC shares to Indonesian parties by 31st March 2002 has been seriously
put at risk by further legal action.

On 18 March 2002 KPC agreed with the Government of Indonesia to offer 51% of KPC
shares to Indonesian parties. Under that agreement, the Government of Indonesia
and KPC agreed that the offer would proceed as soon as all legal actions related
to KPC's divestment obligations had first been withdrawn.


On 21 March 2002, however, further legal action was taken by the lawyers of
Provincial Government of East Kalimantan when attachment orders were granted by
the District Court of South Jakarta over the shares in KPC.  The attachment
orders will place the shares in KPC under the control of the Court and came
without prior notice.   As long as the orders are in place, KPC cannot complete
its divestment offer and transfer shares to Indonesian parties.


The attachment orders are in addition to other attachment orders previously
granted by the District Court of South Jakarta dated 12 March 2002.  These
orders seek to attach shares and interests relating to other assets in Indonesia
held by the shareholders in KPC.


KPC and the affected parties are filing urgent applications to have these
attachment orders removed.


KPC remains willing to make the share offer to Indonesian parties as soon as all
the litigation is withdrawn.


For further information, please contact:


LONDON                                                  AUSTRALIA
Media Relations                                         Media Relations

Andrew Vickerman                                        Ian Head
+ 44 (0) 20 7753 2142                                   [phone]

Investor Relations                                      Investor Relations

Peter Cunningham                                        Dave Skinner
+ 44 (0) 20 7753 2401                                   [phone]
                                                        Daphne Morros
                                                         [phone]

Website: www.riotinto.com


Note to editors


Rio Tinto has a 50 per cent Joint Venture interest in Kaltim Prima Coal.

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