Coal & Allied interim results

Rio Tinto PLC
31 July 2006

Rio Tinto's 75.7 per cent owned subsidiary, Coal & Allied Industries Limited,
issued the following news release in Australia. All dollars are Australian
currency.





Coal & Allied benefits from a buoyant market - 2006 half year results




SUMMARY



•         Net profit after tax was $146.5 million compared with $126.9 million
          for the same period last year


•         Coal & Allied's equity share of production is up 3.9 per cent to 11.0
          million tonnes


•         An interim dividend of $1.10 will be paid on ordinary shares





Commenting on the company's performance, Coal & Allied's Managing Director, Mr
Doug Ritchie said, 'This good result reflects the continuing strong global
market for seaborne traded thermal coal.'



'Coal & Allied's equity share of production increased 3.9 per cent with sales in
line with the shipment allocation set under the Capacity Balancing System
operating through the Port of Newcastle.  Increased port and rail capacity from
new investment is now expected to be available in early 2007,' Mr Ritchie said.



'The rising cost of business inputs is imposing increasing costs on Coal &
Allied.'



Coal & Allied's net profit after tax was $146.5 million.  Shareholders will be
paid an interim dividend of $1.10 on ordinary shares.



*All financial information contained in this release has been prepared on the
basis of the Australian Equivalents to International Financial Reporting
Standards and Interpretations.



SUMMARY OF FINANCIAL PERFORMANCE



Coal & Allied's results for the first half of 2006 compared with the same period
of 2005:


                                                                                Half-year ended 30 June

                                                                                          2006         2005

Sales revenue ($ millions)                                                               722.8        679.6
Net profit after tax ($ millions)1                                                       146.5        126.9
Operating cash flow ($ millions)                                                          88.3        172.8
Dividends (cents per share)                                                                110          110
Coal & Allied equity share of coal production (million tonnes)                            11.0         10.6
Coal & Allied equity share of coal shipments (million tonnes)2                            10.6         11.0


1 2005 comparative includes the effects of changes in accounting policy as
disclosed in note 1 to the financial statements.

2 Shipments exclude purchased coal.



Sales revenue

Sales revenue of $722.8 million was 6.4 per cent more than for the comparative
period of 2005, reflecting higher prices partially offset by lower shipments in
2006, which were in line with the allocation set under the Port Waratah Coal
Services capacity balancing system.



Production

The Coal & Allied equity share of coal production of 11.0 million tonnes was 3.9
per cent higher than in the first half of 2005.  Production at Mount Thorley
Warkworth and Hunter Valley Operations was in line with the port and rail
allocation.  Production at the Bengalla mine increased towards the end of the
first half of 2006 due to mining of more productive seams.



Cash flow

Net operating cash flow of $88.3 million was 48.9 per cent lower than the
corresponding period of 2005.  The decrease is attributable to payment of tax
liabilities arising from 2005 profits.



Dividends

An interim dividend of $1.10 per ordinary share, fully franked, will be paid to
shareholders on 31 August 2006 (2005: interim dividend of $1.10 per ordinary
share, fully franked).  A preference dividend of 1.75 cents per share, fully
franked, will be paid on 31 August 2006.

Debt

Net debt increased to $123.2 million.  Gearing (net debt to net debt + equity)
was 12.5 per cent at 30 June 2006, compared with 7.6 per cent at 31 December
2005.



Capital expenditure

Capital expenditure for the half year was $40.4 million compared with $16.4
million for the same period last year.  Expenditure for the first half of 2006
was predominantly for major overhauls of draglines and shovels, and Mount
Pleasant land acquisitions.





For further information, please contact:

LONDON                                               AUSTRALIA

Media Relations                                      Media Relations
Nick Cobban                                          Ian Head
Office:  [phone]                        Office:  [phone]
Mobile: [phone]                         Mobile: [phone]

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

David Ovington                                       Susie Creswell
Office:  [phone]                        Office:  [phone]
Mobile: [phone]                         Mobile: [phone]


Website: www.riotinto.com
High resolution photographs available at: www.newscast.co.uk







Coal & Allied Financial and Operating Statistics
                                                                                First half      First half
                                                                                       2006
                                                                                                      2005
Production and shipments                                                        '000 tonnes    '000 tonnes


Total shipments 1                                                                    14,156         14,424
Coal & Allied share of shipments                                                     10,643         11,024


Total saleable production 2

Hunter Valley Operations                                                              6,291          6,362

Mount Thorley Operations                                                              2,167          1,738

Bengalla                                                                              2,494          2,704

Warkworth                                                                             3,632          3,227

Total                                                                                14,583         14,031



Coal & Allied equity share of production

Hunter Valley Operations (100%)                                                       6,291          6,362

Mount Thorley Operations (80%)                                                        1,734          1,390

Bengalla (40%)                                                                          998          1,082

Warkworth (55.57%)                                                                    2,018          1,794

Total                                                                                11,040         10,628



Shipments by market 1

Japan                                                                                 5,442            7,061

Asia (excluding Japan)                                                                3,943            2,991

Europe                                                                                  644              953

Other                                                                                 2,205            1,464

Domestic                                                                              1,922            1,955

Total                                                                                14,156           14,424




Shipments by product 1

Export thermal                                                                       10,729         10,508

Domestic thermal                                                                      1,922          1,955

Coking                                                                                1,505          1,961

Total                                                                                14,156         14,424



Financial

                                                                                  $ million      $ million

Total assets3,4                                                                       1,685          1,728

Capital expenditure and investments                                                      40             16
Depreciation and amortisation3                                                           50             53
Employees                                                                             1,489          1,388
Net debt to net debt + equity (%)3,4                                                   12.5            7.6
Earnings per share (cents)3                                                          169.2c         146.6c
Average USD:AUD exchange rate                                                          74.3           77.3

1  Shipments are on a 100% basis and exclude purchased coal
2  Production is on a 100% basis
3  2005 comparative includes the effects of the changes in accounting policy as disclosed in note 1 to the
financial statements
4  Comparative figures are as at 31 December 2005.




                      This information is provided by RNS
            The company news service from the London Stock Exchange