2 new iron ore mines Pilbara

Rio Tinto PLC
26 November 2007



Date: 26 November 2007

Ref: PR580g



Rio Tinto invests US$2.4 billion in two new iron ore mines in the Pilbara


Rio Tinto has announced a further significant investment in its iron ore export
capacity in the Pilbara region of Western Australia, with the approval of the
new Mesa A/Warramboo mine in the Robe Valley and Brockman 4 mine near Tom Price.


The combined investment of US$2.42 billion (nominal terms, 100 per cent basis)
in the two mines will ensure that Rio Tinto's leadership of the Pilbara matches
its unparalleled global position in the iron ore industry. The mines will begin
production in 2010.


Sam Walsh, Chief Executive Rio Tinto Iron Ore, said the new mines were integral
to the Pilbara production platform underpinning Rio Tinto's rapid expansion of
its global network of assets.


'Mesa A/Warramboo and Brockman 4 demonstrate our strategy of substantial
investment in high-quality, long-life, low-cost assets. They are outstanding
deposits, close to existing infrastructure, and each promises excellent
commercial returns,' he said.


'Brockman 4 will bring on a new, high-volume long-life source of Brockman ore, a
key component of the Pilbara Blend product successfully introduced to the market
in July this year. Likewise, our Robe Valley pisolite product has consistently
proved to be competitively attractive for our customers.'




Mesa A/Warramboo

The Mesa A/Warramboo mine, about 50 kilometres from Pannawonica, will have an
initial production of 20 Mtpa, increasing to 25Mtpa by 2011.


The mine will sustain production of Robe Valley pisolite ore at 32Mtpa over the
next decade. Current production from the Mesa J deposit, now nearing the end of
its mine life, will reduce to 7Mtpa with Mesa A providing the balance. A
49-kilometre rail extension will connect the new mine to the Rio Tinto rail
network.


The project capital cost is estimated at US$901 million (Rio Tinto share US$478
million).


Total high-grade reserves across the Mesa A / Warramboo deposits are estimated
at 249Mt, with a total mine life of 11 years.




Brockman 4

The first phase of the Brockman 4 development, about 60 kilometres northwest of
Tom Price, will have an annual output of 22 Mtpa with a potential for further
expansion.  Brockman 4 is well positioned to serve as a hub for the future
development of nearby deposits.  The project has an estimated total capital cost
of US$1,521 million. Design considerations allowing for an increase in output by
14Mtpa, to 36Mtpa, are included in the Phase I scope, which will facilitate a
cost effective ramp up as additional port capacity is brought on line.


Phase I will take two years to construct and commission with production ramp-up
planned to begin in early 2010, and full capacity to be reached by 2012.  The
mine will be connected to the Pilbara Iron Rail network by a 35 kilometre rail
spur to the Brockman 2/Nammuldi operations.


The Brockman 4 orebody contains 573Mt of high-grade reserves (> 60 percent
iron). A further 597 Mt of blending and lower-grade (50-60 percent Fe) resource
will be stockpiled for future processing.


Both expansions are subject to Government approvals.



For further information, please contact:

Media Relations, London                       Media Relations, Australia

Christina Mills                               Ian Head
Office: [phone]                  Office:  [phone]
Mobile: [phone]                  Mobile: [phone]

Nick Cobban                                   Amanda Buckley
Office:  [phone]                 Office:  [phone]
Mobile: [phone]                  Mobile: [phone]


Media Relations, US                           Media Relations, Canada

Nancy Ives                                    Bryan Tucker
Mobile: [phone]                       Office:  [phone]


Investor Relations, London                    Investor Relations, Australia

Nigel Jones                                   Dave Skinner
Office: [phone]                  Office:  [phone]
Mobile: [phone]                  Mobile: [phone]
                                               

                                              Investor Relations, North America
David Ovington
Office:  [phone]                 Jason Combes
Mobile: [phone]                  Office:  [phone]
                                              Mobile: [phone]

Email: [e-mail]


Website: www.riotinto.com

High resolution photographs available at: www.newscast.co.uk



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