Diavik Diamond Mine

Rio Tinto PLC
26 November 2007



Date: 26 November 2007
Ref: PR581g



Rio Tinto approves Diavik underground mining


Rio Tinto has approved investment in the underground mining phase of the Diavik
Diamond Mine. The approval is for additional funding of US$563 million bringing
the total investment to date in the underground mine to US$787 million. The
investment will be funded by the two Diavik joint venture partners, Rio Tinto at
60 per cent and Harry Winston Diamond Corporation (formerly Aber Diamond
Corporation) at 40 per cent.


Under the current life of mine plan, diamond production from underground would
begin in 2009 and continue beyond 2020. Open pit mining is expected to cease in
2012, at which time Diavik would become an all underground mine. Diavik's total
mine life remains within the 16 to 22 years projected in the original
feasibility study of 1999.


To support underground mining, Diavik must construct new surface works including
a crusher and paste backfill plant, expand its water treatment and power
generating plants, and construct ancillary facilities including fuel and cement
storage, and additional accommodation facilities. Approximately 20 kilometres of
underground development works will also be established to bring underground
mining into production. The capital investment of US$563 million will be spent
over the next two years, adding to the US$224 million invested in 2006-07 for
the underground feasibility studies and related capital projects.


This significant new investment in underground mining will provide training,
employment, and business opportunities in addition to those significant benefits
that Diavik already provides. Diavik remains firmly committed to continuing its
work with local communities and governments to meet its socio-economic and its
environmental commitments.


The Diavik Diamond Mine, located 300 km. northeast of Yellowknife, Northwest
Territories, is an unincorporated joint venture between DDMI (60 per cent) and
Aber Diamond Mines Ltd. (40 per cent). Both companies are headquartered in
Yellowknife, Canada. DDMI is a wholly owned subsidiary of Rio Tinto plc of
London, England, and Aber Diamond Mines Ltd. is wholly owned by Harry Winston
Diamond Corporation of Toronto, Canada. DDMI is the operator of the project.


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]
                                               

David Ovington                                Investor Relations, North America

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


Forward looking statements


This announcement includes 'forward-looking statements' within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical facts included in this announcement, including, without
limitation, those regarding Rio Tinto's financial position, business strategy,
plans and objectives of management for future operations (including development
plans and objectives relating to Rio Tinto's products, production forecasts and
reserve and resource positions), are forward-looking statements. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
Rio Tinto, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements.


Such forward-looking statements are based on numerous assumptions regarding Rio
Tinto's present and future business strategies and the environment in which Rio
Tinto will operate in the future. Among the important factors that could cause
Rio Tinto's actual results, performance or achievements to differ materially
from those in the forward-looking statements include, among others, levels of
demand and market prices, the ability to produce and transport products
profitably, the impact of foreign currency exchange rates on market prices and
operating costs, operational problems, political uncertainty and economic
conditions in relevant areas of the world, the actions of competitors,
activities by governmental authorities such as changes in taxation or regulation
and such other risk factors identified in Rio Tinto's most recent Annual Report
on Form 20-F filed with the United States Securities and Exchange Commission
(the 'SEC') or Form 6-Ks furnished to the SEC. Forward-looking statements
should, therefore, be construed in light of such risk factors and undue reliance
should not be placed on forward-looking statements. These forward-looking
statements speak only as of the date of this announcement. Rio Tinto expressly
disclaims any obligation or undertaking (except as required by applicable law,
the City Code on Takeovers and Mergers (the 'Takeover Code'), the UK Listing
Rules, the Disclosure and Transparency Rules of the Financial Services Authority
and the Listing Rules of the Australian Securities Exchange) to release publicly
any updates or revisions to any forward-looking statement contained herein to
reflect any change in Rio Tinto's expectations with regard thereto or any change
in events, conditions or circumstances on which any such statement is based.


Nothing in this announcement should be interpreted to mean that future earnings
per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed
its historical published earnings per share.



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