Comalco Final Results - Year to 31 December 1999

Rio Tinto PLC
18 February 2000


The following was released earlier today in Australia by
Comalco Limited.

             Comalco Reports Strong Profit Growth

FINANCIAL SUMMARY

  Net  profit after tax and before abnormals for 1999  was
  $308.5 million, up $72.4 million (31 per cent) on 1998.  The
  improved result was due to higher sales volumes ($42 million),
  and lower operating and funding costs ($96 million), offset by
  increased taxation ($64 million). A slight increase in sales
  prices was essentially offset by a modest strengthening of the
  Australian dollar.

  Net  profit after tax and abnormals for 1999 was  $371.5
  million.  An  abnormal item of $63 million was  recorded  to
  reflect  the  effect  of  the reduction  in  the  Australian
  corporate tax rate on the deferred tax balance. There were no
  abnormal items in 1998.

  An  unfranked final dividend of 19 cents per  share  was
  declared, taking the total dividend for the year to 28 cents,
  an increase of 5 cents per share on 1998.

In announcing the results, Comalco's Chief Executive, Mr Terry
Palmer said, 'This is a very good result. We are continuing to
make  excellent  progress through the performance  enhancement
process  started in 1997. This result reflects  the  excellent
improvement  ideas and hard work contributed  by  all  of  our
employees.

'The  performance  enhancement  program  was  introduced  into
Comalco three years ago, in early 1997. The objective  was  to
achieve  ongoing  cost savings and production gains  exceeding
$200  million  by  the end of 1999. Actual  cost  savings  and
production  gains achieved by year end were at an annual  rate
of   $251   million.  These  gains,  combined  with  increased
production  and  lower capital expenditure, have  resulted  in
substantially  improved  profitability  and  cash  flow.   The
gearing ratio (net debt to net debt plus shareholders'  funds)
was reduced from 38 per cent at the end of 1998 to 24 per cent
at the end of 1999.

'Comalco's  share of aluminium produced in 1999 rose  by  four
per  cent  to  678,000  tonnes from 651,000  tonnes  in  1998,
reflecting record production at all three smelters. Sales into
Asia  increased by over 80,000 tonnes in 1999.  As  a  result,
exports  to  USA  and Europe fell to five per  cent  of  total
sales.

'A  more  positive world economic outlook, including  economic
recovery in Asia helped push aluminium prices higher, but  for
the  full year the metal price was only marginally higher than
for  1998.  At year end, the London Metal Exchange  price  for
primary  aluminium  was US$1,631 per tonne (US74.0  cents  per
pound), its high for 1999.

'Comalco  expects the market for aluminium to be  balanced  in
2000   with   the  potential  for  a  shortfall   in   alumina
underpinning  the  price  for  aluminium.  Demand  growth   is
projected at four to five per cent in 2000, and over three per
cent  per  annum  average for the next decade. The  automotive
industry  will be a significant contributor to this growth  as
the  economic  and  environmental benefits  of  aluminium  are
increasingly recognised.

'In   2000,  Comalco's  focus  will  be  to  continue  driving
improvement   in  performance  and  profitability,   including
achieving a 50 per cent improvement in our safety record.'


SUMMARY OF FINANCIAL RESULTS ON A JOINT VENTURE BASIS

Comalco's audited results for the year to 31 December 1999 are
shown below, along with comparative results for 1998.

                                           1999      1998  Change
                                       $million  $million       %
                                           
Sales revenue                           2,271.1   2,150.3     5.6
                                             
Earnings before interest, tax,                                
depreciation and amortisation             725.3     618.5    17.3
Net profit after tax, before abnormals    308.5     236.1    30.7
Abnormal items (1)                         63.0        -       -
Net profit                                371.5     236.1    57.3
Dividend - cents per share                 28        23      21.7
                                                              
(1) Represents a release of deferred taxation as a result of the
decrease in the Australian corporate tax rate.

DIVIDEND

Directors declared an unfranked final dividend of 19 cents per
share  (1998 final unfranked dividend of 13 cents per  share).
The final dividend, together with the interim dividend of nine
cents per share takes total dividends for 1999 to 28 cents per
share unfranked (1998 23 cents per share unfranked).

The  final  dividend  will  be  paid  on  21  March  2000   to
shareholders  registered  at close  of  business  (10.00pm  in
respect of holdings on the CHESS Subregister) on 7 March 2000.

New  Zealand  shareholders will be paid their dividend  on  21
March  2000 in New Zealand currency at the Bank of New Zealand
telegraphic transfer buying rate for Australian currency on  7
March 2000.

It  is  anticipated that sufficient franking credits  will  be
available to fully frank the 2000 interim dividend.

SALES REVENUE

Aluminium  sales volumes increased by 2.4 per  cent  in  1999.
Production increased by 4.1 per cent from 1998 due to improved
operating  efficiencies and record production  levels  at  all
three  smelters.  Aluminium  inventories  increased  by  2,000
tonnes during 1999.

Marginally  higher  average US dollar  aluminium  prices  were
essentially  offset by the upward movement of  the  Australian
dollar against the US dollar.

FUNDING

Cash Flow

Net  operating  cash flow decreased by $104  million  to  $706
million (1998 $810 million Underlying earnings increased,  but
working  capital increased due mainly to higher  metal  prices
and  lower  payables at the end of 1999. The 1998 result  also
benefited from a large one off reduction in working capital.

Capital Expenditure

Total capital expenditure for 1999 decreased from $169 million
in  1998  to $126 million in 1999. The performance enhancement
process  is  focused on improving capital  efficiency  whilst
assuring that plant and equipment continue to be maintained to
high standards.

Debt

Debt  decreased by $455 million in 1999 to $601  million.   In
addition  to  debt repayments of $416 million, revaluation  of
the Australian dollar against the US dollar from US61 cents at
the  end of 1998 to US65 cents at the end of 1999 reduced  the
debt balance by a further $39 million.

PRICES AND INTERNATIONAL INDUSTRY CONDITIONS

Market Conditions

The  LME price recovered from its low in March 1999 to end the
year at US$1,631 per tonne (US74.0 cents per pound). The price
improvement  was  in  line with firming demand  as  the  Asian
recovery  gathered  momentum,  reduced  aluminium  stocks  and
concerns  of  a  possible raw material shortage  following  an
explosion  at  Kaiser's  Gramercy alumina  refinery  in  July.
Alumina prices have risen sharply since the one million tonnes
of  annual capacity from Gramercy was removed from the market.
Kaiser  has  announced plans to rebuild the refinery  and  has
forecast commissioning mid-2000.

The London Metal Exchange (LME) cash price for primary
aluminium averaged US$1,362 per tonne (US61.8 cents per pound)
in 1999, slightly up on the average price of US$1,356 per
tonne (US61.5 cents per pound) in 1998.

Comalco met increased customer demand in the Asian region from
increased  smelter  production, metal  purchases  and  reduced
exports to Europe and the USA.  Sales in Japan, Australia  and
New  Zealand were similar to 1998. Asian market premiums  were
also firmer in 1999, averaging US$60 -70 per tonne.

In January 2000, Alcoa announced the restart of 209,000 tonnes
of idled primary aluminium capacity in Australia and the USA.
The market is expected to be broadly in balance in 2000,
including this tonnage.

Outlook

Japan still holds the key to continuing recovery in the region
due  to the size of its economy and intra-regional trade.  The
Japanese  economy  appears to have  been  assisted  by  export
demand  growth and public sector spending, but private  demand
remains  tentative.  The outlook for Western  Europe  and  USA
demand remains positive.

The  prospects of a strong world economy in 2000 appear  good.
Regional   Asian  markets  are  expected  to  continue   their
recovery. Primary aluminium consumption is projected  to  grow
by  four  to  five  percent in 2000, with some  prospect  that
demand will outpace production.

REVIEW OF OPERATIONS

Environment, Health, Safety And Communities

Comalco  will produce for the first time this year a  separate
social  and environment report as a companion document to  the
annual report. This document will detail Comalco's performance
in  the  areas  of health, safety, environment  and  community
involvement.

Comalco  recognises  the importance of responsible  greenhouse
management and has invested significantly in the past  several
years  to  reduce  greenhouse  emissions  at  its  operations.
Greenhouse  emissions  per tonne of  aluminium  produced  have
decreased by 70 per cent since 1990.

Overall safety performance improved. In 1999, the lost time
injury frequency rate was 30 per cent better than in 1998. Our
goal is zero safety incidents. We have set a target to reduce
the number of lost time injuries by at least 50 per cent in
each of the next two years, and 30 per cent in each of the
succeeding two years. When these improvements are achieved,
Comalco's safety performance will be amongst the best in the
world

Year 2000

Comalco experienced no issues in its systems, or those of any
supplier that affected the business in the changeover to the
year 2000.

Mining & Refining

Bauxite production at the Weipa mine was at record levels,  22
per cent higher than for 1998.

Alumina  entitlements rose 70,000 tonnes to  1,647,000  tonnes
due to record production at the Queensland Alumina Limited and
Eurallumina refineries.

Smelting

Record  production was achieved at the Bell Bay, Boyne  Island
and  Tiwai Point smelters. Comalco's aluminium entitlement was
678,000 tonnes, an increase of 4 per cent on 1998.

An additional 30 MW supply of electricity was obtained for the
Boyne  Island smelter, enabling the return to service in April
1999 of the remaining seven cells in Line three.

Research & Technical Support

Research  and  development expenditure was  $17  million.  The
clear  focus  is  on  site  support, process  improvement  and
product  marketing  support.  This  work  is  a  key  part  of
Comalco's performance enhancement process.

Comalco Alumina Project (CAP)

Comalco  continued to study the feasibility  of  a  greenfield
refinery  based on Weipa bauxite. The project site is expected
to be selected by the end of the first quarter.
                               
For further information contact:

Media Relations                    Investor Relations

Alexis Fernandez                   Peter Jarvis
+ 44 207 753 2305                  + 44 207 753 2401



Note to Editors

Rio Tinto owns 72.4 percent of Comalco Limited.

All $ in Comalco's release are Australian dollars.

In  its 1999 earnings, Comalco has taken a deferred tax credit
of A$63 million, following the legislation to reduce corporate
tax  rates  in Australia. Rio Tinto will also be  including  a
deferred  tax  credit in its 1999 results.  The  deferred  tax
credit  related  to  all of Rio Tinto's Australian  operations
including Comalco will be US$74 million. This credit  will  be
reported  in  adjusted earnings but will not be attributed  to
individual Business Units.


          COMALCO FINANCIAL AND OPERATING STATISTICS
                                                    Year      Year
                                                    1999      1998
MINING & REFINING                              $ million $ million

Total sales                                      1,001.7     935.5
Total assets                                       644.8     650.2
Capital expenditure                                 65.4     116.1
Depreciation and amortisation                       63.5      56.6
                                                                  
Bauxite                                            000's     000's
                                                  tonnes    tonnes
Weipa                                                             
Beneficiated bauxite production                   11,386     9,308
Metal grade bauxite shipments                     11,194     9,789
Calcined bauxite production                          112       133
Boke                                                              
Metal grade bauxite shipments (Comalco's             441       429
share)
                                                                  
Alumina (Comalco's alumina entitlements)           000's     000's
                                                  tonnes    tonnes
Queensland Alumina (30.3%)                         1,101     1,057
Eurallumina (56.2%)1                                 546       520

Total                                              1,647     1,577
  
                                                                
                                                    Year      Year
                                                    1999      1998
SMELTING                                       $ million $ million

Total sales                                      1,521.3   1,508.1
Total assets                                     2,072.3   2,171.3
Capital expenditure                                 46.9      34.8
Depreciation and amortisation                      103.2     114.7
                                                                  
Primary aluminium (Comalco's entitlements)         000's     000's
                                                  tonnes    tonnes
                                                     151       142
Bell Bay, Tasmania
Tiwai Point, New Zealand (79.36%)                    259       252
Boyne Island, Queensland (54.32%)                    268       257
Total                                                678       651

Total sales include both external and internal sales at market
price.  Intercompany  sales are eliminated  in  the  financial
statements.

Prior  period  Mining & Refining depreciation and amortisation
figures  have  been restarted to include the  amortisation  of
expenditure associated with the Comalco Alumina Project.