Expansion of Hope Downs

Rio Tinto PLC
02 August 2007

Green light for US$350 million Hope Downs mine expansion

Rio Tinto and its joint venture partner Hancock Prospecting Pty Limited will
spend US$350 million on a fast-tracked expansion of the new Hope Downs iron ore
project in the Pilbara region of Western Australia. At the completion of the
expansion, expected by early 2009, the mine will have a capacity of 30 million
tonnes per annum.

Work on the initial 22 million tonnes per annum project commenced in April 2006
at a cost of US$1 billion with first production expected by early 2008.

Rio Tinto Iron Ore chief executive Sam Walsh said: 'The rapid expansion of Hope
Downs is an integral part of our plans to lift annual iron ore production in the
Pilbara to 220 million tonnes by early 2009.

'Thanks to continued strong market conditions we have been able to bring this
highly value accretive expansion forward by one year. We are currently
investigating other opportunities to increase our Australian iron ore business
to about 320 million tonnes in the future.'

Hancock Prospecting chairman Mrs Gina Rinehart said, 'We are delighted to
jointly announce and be part of the bringing forward of stage 2 of the Hope
Downs development at Hope South. We are working hard to bring other high
potential iron ore projects to the market.'

Hope Downs is a high-grade Marra Mamba iron ore deposit. It will contribute to
the Pilbara Blend, the new product that was first shipped in July and comprises
Brockman and Marra Mamba ore extracted from nine of Rio Tinto Iron Ore's 11
mines in the Pilbara.

Note to Editors

• In July 2005, Rio Tinto reached agreement with Hancock Prospecting Pty
  Limited to purchase a 50 per cent interest in the iron ore assets of Hope 
  Downs Iron Ore Pty Limited.

• The Hope Downs project, a 50:50 unincorporated joint venture between
  Rio Tinto and Hancock Prospecting, was ratified in April 2006 to develop the
  Hope Downs iron ore assets.

• The Hope Downs joint venture assets include the Hope Downs 1, 2 and 3
  and Hope Downs 4, 5 and 6 (formerly East Angelas 1, 2 and 3) deposits.

• Rio Tinto will manage the development and operation of the project
  assets subject to a joint Rio Tinto Iron Ore and Hancock Prospecting Pty Ltd
  Management Committee.

• The project will use Pilbara Iron managed port, rail and power
  infrastructure.

• The expansion will include the installation of primary and secondary
  crushing facilities adjacent to the Hope Downs 1 south orebody and an 
  additional railway siding. It will also include new overland conveyors, 
  train load-out, mining fleet and rolling stock.





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