Bougainville Cooper AGM Stmnt

Rio Tinto PLC
4 May 2000


BOUGAINVILLE COPPER ANNUAL GENERAL MEETING

The Chairman of Bougainville Copper Limited, Mr B L Cussack,
gave the following supplementary statement at the Annual
General Meeting of Bougainville Copper on 3rd May 2000:

At last year's Annual General Meeting members were advised the
company was looking at strategies for the future of the
company.  Among the investigations foreshadowed was the sale
of assets on Bougainville.  This aspect of the strategic study
has received broad local and Australian press coverage.  While
it is too early to bring recommendations concerning the
company's strategic direction to this meeting I can put before
you some of the issues driving the Board's thinking.

World prices for copper, gold and silver are low and with
existing production meeting demand there is little likelihood
of significant price increases.  Studies undertaken by the
company show a steady weakening of conditions required for a
restart of operations.  Even if there were no political and
social impediments to recommencing operations it would not, as
this point in time, be economically feasible to do so.

That is not to say BCL's assets on Bougainville have no value.
There is a potential mine life of 15 to 20 years capable of
producing a notional 180,000 tonnes of copper and 15 tonnes of
gold per annum.  Pre-stripping has been done and 250 million
tonnes of ore has been exposed.   The port is in relatively
good condition and road access to the mine can be readily
repaired.  From an economic perspective the issues are largely
metal prices and the low-grade ore body which requires a large-
scale operation and therefore high capital investment.

Political and social factors are important.  Bougainville  has
had provincial government restored.  The recent 'Loloata
Understanding' is a positive step towards a political solution
for Bougainville although there are issues yet to be resolved
including control of resources and the vexed issue of a
referendum on independence is far from resolved.  An
influential Bougainvillean was recently quoted in the press as
saying he would not permit resumption of mining on
Bougainville and the mine site is still an area where freedom
of access is not available.

For BCL shareholders the issue is whether their best interests
are served by continuing to wait for conditions favourable to
mining, particularly given the antipathy from some influential
Bougainvilleans to BCL playing a role in the future economic
development of Bougainville.

Your company will seek to clarify its relationship with those
who must decide the future of Bougainville and the mining
leases and assets.  Only then can issues relating to the
Bougainville Copper Agreement be dealt with and the future
directions for the company be examined.

Mr Bruce Alexander was appointed to the Board during the year
and in accordance with the constitution will retire at this
meeting.  Mr Moseley Moramoro and I retire at this meeting by
rotation.  Each of the retiring directors offers themselves
for election at this meeting.

Rio Tinto owns 53.6 per cent of Bougainville Copper Limited

For further information, please contact:

Media Relations                         Investor Relations

John Hughes                             Peter Jarvis
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