Exploration jv with Norilsk

Rio Tinto PLC
27 January 2006



Norilsk Nickel and Rio Tinto announce exploration and development joint venture
in Russia


Norilsk Nickel, Russia's largest mining and metallurgical company, and Rio
Tinto, one of the world's largest international mining companies, today
announced the launch of an exploration and development joint venture in Russia.


The companies signed a co-operation protocol in the Ministry of Natural
Resources. The agreement establishing the formal terms governing the joint
venture was signed today. The agreement entails the establishment of a joint
venture exploration and development company, owned 51 per cent by Norilsk Nickel
and 49 per cent by Rio Tinto. Initial exploration efforts will concentrate on
opportunities in the Siberian and far-eastern federal districts of Russia.


Rio Tinto chief executive, Leigh Clifford, said: 'Rio Tinto has increased its
exploration and development activity in Russia over the last few years, and we
are now delighted to enter into this agreement with a partner of the stature of
Norilsk Nickel. The establishment of this joint venture breaks new ground for
the mining industry. Combining the skills and resources of Norilsk Nickel and
Rio Tinto will provide an unrivalled platform for exploration and development of
mineral deposits in Russia.


'We are pleased that by expanding our long term commitment towards exploration
in Russia, Rio Tinto will play a significant role in developing the country's
resource base.'


Norilsk Nickel chief executive, Mikhail Prokhorov, said: 'Norilsk Nickel
continues to focus on growing and diversifying its resource base and on gaining
exposure to international best practices. Entering into this agreement with Rio
Tinto will bring together the knowledge and expertise of two leading mining
companies to promote exploration in Russia. This country's mineral wealth
remains untapped in many areas across many minerals, and we will pursue the
development of new discoveries and known deposits with the potential for
significant capital investment and attractive financial returns.


'The aim of the joint venture will be to create a viable economic model of
cooperation to accelerate and enhance exploration for new mineral resources in
Russia, thereby promoting the mineral wealth and economic development of the
regions.'



Background notes to editors


Norilsk Nickel


MMC Norilsk Nickel is the world's largest producer of nickel and palladium, and
a major producer of platinum, copper and cobalt. Following a number of
acquisitions in Russia, Norilsk Nickel is also one of the largest gold producers
in the world and the largest in Russia. MMC Norilsk Nickel is listed on several
Russian exchanges (MICEX, RTS, GMKN), ADRs are traded over the counter in New
York (NILSY US), London (MNOD LI) and Berlin (NNIA GR).



Rio Tinto



Rio Tinto is one of the world's leading mining groups, with a market
capitalisation of about US$70 billion. Major products include aluminium, copper,
diamonds, energy products, gold, industrial minerals (borates, titanium dioxide,
salt and talc) and iron ore. It is listed on both the London and Australian
stock exchanges and has an ADR listing on the New York Stock Exchange.



The Russian mining industry



Aluminium

Russia produces 12 per cent of world output and is the world's largest exporter
of primary material.



Gold

Russia produced 182 tonnes of gold in 2004, or seven per cent of world mine
output.



Diamonds

The volume of rough diamond production in Russia is 25 million carats, 16 per
cent of the world total of 155 million carats.



Copper

Russia produced 900,000 tonnes of refined copper in 2004.



Nickel/ Platinum Group Metals

Russian nickel production was 270,000 tonnes in 2004, more than 20 per cent of
global output, all from local raw materials. Platinum output was 850,000 ounces,
13 per cent of global output, and palladium, half of world supply.



Coal

Russia is the world's sixth largest producer of coal. In 2004, Russia produced
61 million tonnes of coking coal and 148 million tonnes of steam coal.



Iron Ore

Annual production is 97 million tonnes. Russia is a net exporter of iron ore (20
million tonnes) and pellets (10 million tonnes).



Uranium

Russia is one of the world's major producers of uranium and has a substantial
nuclear power programme.



Potash

In 2004, Russia was the second largest producer of potash after Canada,
producing about 9.3 million tonnes of potash or 20 per cent of world production.





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