Bid Conditions

Rio Tinto PLC
7 July 2000


              NORTH'S IOC ANNOUNCEMENT BREACHES BID CONDITIONS

Rio Tinto has concluded that the conditions of its bid for North have been
breached, based on information released by North on 30 June 2000 in relation to
its subsidiary, Iron Ore Company of Canada (IOC).  North's announcement referred
to the $C365.5 million reactivation of the Sept-Iles pellet plant by IOC.

Rio Tinto is not in a position to determine the impact of this breach on its
bid.  North's announcement did not contain sufficient information for an
informed assessment of the financial impact upon North of the reactivation of
the pellet plant, including any North financial guarantees.  If Rio Tinto
determines that these matters (whether alone or together with other matters
announced by North) are of such magnitude that Rio Tinto should not waive any
breach of its bid conditions, it will inform the market promptly thereafter.

North also announced on 30 June 2000 that it remains committed to the West
Angelas project and that North (along with the other Robe River Iron Ore
Associates participants) is obliged to incur considerable further expenditure in
addition to that already reported.  North has not provided sufficient
information as to the extent of those obligations to permit Rio Tinto to
determine whether they constitute a breach of the bid conditions.

In its Bidder's Statement, Rio Tinto stated its intention to continue North's
participation in the West Angelas project, subject to customers confirming they
would continue to support the project.  Rio Tinto gave careful consideration to
the conditions of the bid to ensure that North could continue to conduct its
business in the ordinary course, and to proceed with the West Angelas mine and
other significant aspects of the project.  Rio Tinto would be concerned,
however, about significant expenditure and commitments on West Angelas-related
port and duplicative rail facilities during the relatively short period of its
offer.  If the bid is successful, these expenditures and commitments would
potentially be wasteful and would diminish the value of North to Rio Tinto.

Rio Tinto believes that its bid conditions enable 'business as usual' for North.

Rio Tinto will not be in a position to assess the significance of breaches of
conditions of its bid before its review of North's Target's Statement and any
other relevant information which North may provide.  On 30 June 2000, North
undertook to announce any further contracts in relation to West Angelas when
let.  Rio Tinto believes that North should extend this undertaking to
commitments in respect of other projects including Sept-Iles.

For further information contact:

Media Relations

Lisa Cullimore     [phone]

Investor Relations

Peter Jarvis       [phone]

Website:  www.riotinto.com