Stmt re Kaltim Prima Coal

Rio Tinto PLC
2 July 2002



             KPC agrees to extension of Divestment Offer timetable


PT Kaltim Prima Coal (KPC) and the Government of Indonesia have agreed to extend
the time for the 2001 offer of 51% of the shares in KPC to 31 July 2002.  The
price of US$822 million (100% basis) remains unchanged.



This agreement follows the good progress made by both parties.  Discussions to
finalise the necessary formal agreement by 31 July are continuing.



KPC will make its 2001 share offer subject to removal of the litigation and the
signing of the formal agreement with the Government of Indonesia.



Rio Tinto has a 50 per cent joint venture interest in KPC.



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]

Richard Brimelow                                        Daphne Morros
+ 44 (0) 20 7753 2326                                    [phone]



Website: www.riotinto.com





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