Stmt re Iron Ore Co of Canada

Rio Tinto PLC
28 September 2001


                   The Iron Ore Company of Canada announces                   
           suspension of construction at the Sept-Iles Pellet Plant           


The Iron Ore Company of Canada (IOC) announced on 27 September 2001 that due
to deteriorating market conditions, reconditioning of the Pellet Plant in
Sept-Iles Quebec will be suspended.
 
The C$360 million Pellet Plant project was planned to come on stream in
mid-2002 and be able to produce at the rate of 4.5 million metric tons per
year.
 
IOC President and CEO Mr. Terry F. Bowles said: 'The steel industry is facing
very difficult market conditions in North America and Europe, which are IOC's
major markets. This has resulted in a very significant fall-off in demand for
IOC's pellets.
 
The decision to suspend the pellet plant project has been a difficult one and
we appreciate that it impacts on our contractors, prospective employees and
the community of Sept-Iles. We are confident that construction will resume in
the future with the return of more favourable market conditions and that IOC
will emerge from this market cycle stronger and even better positioned to
supply customer requirements.
 
The suspension will be implemented over the next few months as both
construction work and equipment purchases are progressed to the point where a
future reactivation of the project can be accomplished quickly and smoothly.
 
Throughout 2001, IOC's current facilities have been operating at full
capacity. This has resulted in a build-up of stocks which will favourably
position the Company should customer requirements increase next year. If poor
market conditions persist, consideration will be given to a scheduled
temporary shutdown of IOC's facilities during the 2002 summer period.'
 
IOC currently operates a mine, concentrator and pellet plant in Labrador,
Newfoundland and a railway and deep water port facility in Sept-Iles Quebec.
It is a major supplier of iron ore concentrates and pellets to steel
producers in North America, Europe and the Asia/Pacific.
 
IOC shareholders are Rio Tinto (56%), Mitsubishi Corporation (25%) and the
Labrador Iron Ore Royalty Income Fund (19%).
 
 
For further information, please contact:
                                                                
              LONDON                     AUSTRALIA                
              Media Relations            Media Relations          
              Lisa Cullimore             Ian Head                 
              + 44 (0) 20 7753 2305      [phone]      
              Investor Relations         Investor Relations       
              Peter Cunningham           Dave Skinner             
              + 44 (0) 20 7753 2401      [phone]      
              Jonathan Murrin            Daphne Morros            
              + 44 (0) 20 7753 2326      [phone]      
 
Website: www.riotinto.com