Final Results - Year Ended 31 Dec 1999, Part 1

Rio Tinto PLC
24 February 2000


PART 1


Rio Tinto Earnings Grow to $1,282 Million Despite Lower Prices
                               
                                                      
 * Adjusted earnings up 16 per cent, despite a $163 million reduction from    
   prices and exchange rates

 * Strong volume growth, including the successful commissioning of new        
   projects, added $102 million to earnings

 * Further cash cost savings in 1999 contributed $204 million to net earnings

 * Operating cash flow remained strong at just over $3 billion, with net debt 
   down $829 million

 * Increased second half earnings benefited from recovering metals prices and 
   improved volumes

 * Dividend increased by three US cents per share

 * Encouraging prospects for 2000

'1999 performance was very good in the context of tough market conditions and
generally weaker prices,' said Rio Tinto Chairman Sir Robert Wilson.  'It
provides further evidence of continuing underlying improvements in our
business, especially our efficiencies, investments and volume growth.'

'Second half earnings were 52 per cent higher than the first half.  That
included some one-off tax credits, but even without them our second half was
up by 42 per cent.'

'Metal prices rose during the year but remained at historically low levels,
implying considerable potential for further profit improvements.'


Full Year to               1999          1998    Change             1998
31 December          (excluding                               (including
(US dollars)        exceptional                              exceptional
                        items)*                                  items)*

Group turnover          $9,310m        $9,221       +1%          $9,221m
  
Profit before tax       $2,031m        $1,951       +4%          $1,508m

Net earnings/
Adjusted earnings       $1,282m        $1,103      +16%            $700m

Earnings per share   93.6 cents    79.4 cents      +18%       50.4 cents

Total dividends -
US cents per share   55.0 cents    52.0 cents       +6%       52.0 cents


All $ are US$, unless otherwise stated.
* See page 10, note (c)



FULL YEAR 1999 REVIEW

Lower prices, particularly for coal and iron ore, together with adverse
exchange rates, reduced earnings by $163 million.  This reduction was more
than offset by cost savings, and volume increases from acquisitions and
expansions, including new projects running up to full capacity. 1999 was the
first full year of production from the Australian Yandicoogina iron ore mine,
the mine expansion and new copper oxide plant at Escondida in Chile and the
Jacobs Ranch coal mine in the US.

Cash cost savings totalled $204 million with strong contributions right across
the Group.  This was partly offset by inflation of $77 million.

'We aim to develop, maintain and increase our competitive advantage.  The
strength of our product group structure and our continued emphasis on core
competencies - financial, technical, operational, environmental and community
- have a clear impact on earnings and value delivered to our shareholders,'
said Leon Davis, Rio Tinto's Chief Executive.

'Our financial strength is self-evident.  Our technical expertise is
demonstrated by the rapid ramp up of Hamersley's Yandicoogina mine,
commissioned under budget and ahead of schedule, full capacity performance at
Fortaleza in Brazil and QIT's UGS plant in Canada and expansions in the Powder
River Basin in the US.  Efficiency programmes particularly at Hamersley,
Comalco and Kennecott Utah Copper have resulted in increasing cost savings.
Further significant efficiency improvements are expected in 2000 though the
impact may not be as large as in previous years.   In our communities, we take
responsibility to manage the change that our businesses bring by developing
direct relationships with those who live near our operations.  Rio Tinto
managers strive to ensure that quality community relations are a core part of
their work.'


OUTLOOK

'Looking to 2000, the prospects for commodity prices depend, as usual, on the
world economy,' said Sir Robert.  'Indications are encouraging, with continued
growth in the US, accelerating growth in Europe, and now some increase in
Japanese industrial production.  Emerging Asia is rebounding from crisis,
China continues to grow and even Russia is showing signs of ending its long
decline.  The prime uncertainty remains the timing and form of any slowdown in
the US economy and whether growth in Europe and Japan will be sufficient to
offset it.  Markets are generally in balance so strong global growth could
lead to a robust price performance.  This comes at a time when Rio Tinto's
asset portfolio and operating performance are stronger than at any time in the
past.'



FULL YEAR 1999 FINANCIAL RESULTS


NET EARNINGS

Adjusted earnings increased by $179 million to $1,282 million, which was 16
per cent above the $1,103 million in 1998.  Excluding the $89 million
reduction in deferred tax provisions as a result of lower tax rates, the
increase in earnings was eight per cent.

Higher sales volumes produced $102 million of this increase, with a full year
contribution from the Jacobs Ranch coal mine and growth spread widely over the
Group's businesses elsewhere.  Cash cost savings added $204 million to
earnings with continued emphasis on cost reduction programmes in all product
groups. These savings well exceeded additional costs due to inflation of $77
million. Before tax and minorities the additional cost savings in 1999
amounted to $353 million.

Changes in selling prices from their 1998 levels reduced earnings by $134
million, particularly due to lower prices for iron ore and seaborne coal. 
Annual copper and gold prices averaged five per cent below 1998 levels but
were recovering by the end of the year.  Exchange rate movements reduced 1999
earnings by $29 million.

Interest charges increased by $39 million after tax, including the effect of
reduced capitalised interest following the completion of several large
projects.  However, there was a benefit of a similar amount from the sale of
undeveloped property.

The Group's tax rate at 27 per cent compares with 34 per cent in 1998,
excluding the impact of exceptional items.  The lower tax rate includes the
effect of adjustments to deferred tax provisions following reductions in
future tax rates in Australia  and South Africa, which added $89 million to
the Group's net earnings. Apart from such adjustments, the Group's Australian
earnings were taxed at 36 per cent.  Had the 1999 Australian earnings been
taxed at the 30 per cent Australian corporate tax rate, which will apply from 
2001, earnings would have been some $40 million higher.  In 2000, the
Australian tax rate will be 34 per cent.

Net earnings for 1999 were the same as adjusted earnings as there were no
exceptional items.  1998 net earnings were reduced to $700 million by
exceptional asset write-downs of $403 million, which predominantly resulted
from the introduction of UK accounting standard FRS11.

Second half year earnings were $264 million higher than the first half of 
1999.  Increased prices contributed $98 million with a recovery in copper and
aluminium prices.  Volume increases, particularly in the iron ore business,
contributed a further $113 million.  There was also a benefit of $74
million from the reduction in future tax rates in Australia.


CASH FLOW

Cash flow from operating activities together with dividends from joint
ventures and associated companies totalled $3,015 million, which was $56
million below 1998 levels, with an increase of $41 million in working capital
after a reduction of $128 million in 1998.  Capital expenditure and financial
investment at $519 million absorbed $647 million less cash than in 1998. 
Expenditure on property, plant and equipment was $277 million below
the 1998 level and funding of joint ventures' and associates' capital
expenditure was $117 million lower. Taken together, these forms of investment
were less than half the 1997 level, largely as a result of the completion of
several major projects.  'Other funding of joint ventures and associates'
included cash inflows from further repayments of the loan to Freeport out of 
the cash flows from its share of the Grasberg expansion.  This also included
the replacement of a loan to an associated company with third party finance.

Acquisitions of $326 million included the purchase of a joint venture interest
in the Kestrel coal operation in Queensland, Australia.  Acquisitions less
disposals, at $279 million, absorbed $210 million less cash than in 1998.
As a result of the favourable changes summarised above, the Group generated a
cash inflow before management of liquid resources and financing of $825
million, which compares with an outflow of $37 million in 1998.  $1,097
million of cash was generated in the second half of 1999 after a $272 million
outflow in the first half.


BALANCE SHEET

Shareholders' funds increased by $677 million over the year, to $7,096
million, with retention of profits of $528 million after dividends.  There
were also exchange gains of $159 million as a result of an eight per cent
strengthening of the Australian dollar.  Net debt reduced to $2,429 million in
1999 and the ratio of net debt to total capital strengthened from 31.5 per
cent  to 23.7 per cent.

A prior year adjustment arising on the implementation of FRS 12 reduced
shareholders' funds by $293 million at the start of 1999. Details of this
change are given on page 18.


DIVIDENDS

A 1999 final dividend equivalent to 38.5 US cents per share (1998: 35.5 US 
cents) has been declared by Rio Tinto plc and Rio Tinto Limited.  This,
together with the interim dividend equivalent to 16.5  US cents per share,
makes a total for the year of 55.0  US cents per share, six per cent higher
than for the 1998 payment of 52.0 US cents per share.

Dividends continue to be determined in US currency.  Rio Tinto Limited
dividends are declared and paid in Australian dollars and Rio Tinto plc
dividends are declared and paid in pounds sterling, converted at exchange
rates applicable two days prior to their announcement.

Rio Tinto plc shareholders will be paid a final dividend of 23.84 pence per
ordinary share (1998: 22.03 pence).  Together with the interim dividend of
10.39 pence per share paid on 31 August 1999, dividends for 1999 total 34.23
pence per share (1998: 31.99 pence).

Rio Tinto Limited shareholders will be paid a final dividend of 61.47
Australian cents per ordinary share (1998: 55.56 Australian cents).  This will
be fully franked at the tax rate of 36 per cent.  Together with the fully
franked interim dividend of 25.64 Australian cents per share paid on 31    
August 1999, dividends for 1999 total 87.11 Australian cents per share (1998:
83.52 Australian  cents), franked at the tax rate of 36 per  cent.   The
directors consider that there are sufficient franking credits available for
paying fully franked dividends for at least the next year.                    
                                     

The respective dividends will be paid on 7 April 2000 to shareholders
registered at close of business on 10 March 2000, and to Rio Tinto plc bearer
shareholders against coupon 82 on or after 7 April  2000.  The ex-dividend
date will be 6 March 2000.  Dividends to Rio Tinto ADR holders will be paid on
10 April 2000.                                                             



REVIEW OF RIO TINTO OPERATIONS
(Production  shown  is the product group share  of  output  unless
otherwise stated.)


IRON ORE GROUP              
1999 earnings $259 million, down 25%
Total production at 55.1 million tonnes, down 1% 
Rio Tinto share at 51.1 million tonnes, down 1%

Rio Tinto's Iron Ore group in Western Australia accounted for ten per cent of
Group turnover.  The Yandicoogina mine, operating up to capacity in its first
year of production, began to ship ore in January.  The mine produced 10.6
million tonnes in 1999, reflecting the strong and growing market for its
product.  Total Hamersley production of 55.1 million tonnes, which includes
all of Channar's production, was similar to 1998 levels, despite severe
weather in the first quarter and a cyclone that caused a temporary shutdown 
in the fourth quarter.  Strong demand resulted in total shipments of 59.6
million tonnes, the second highest annual total ever.  Operating all Hamersley
mines as one resulted in continued efficiency improvements.  All these factors
helped to offset the 10 to 11 per cent reductions in iron ore prices, which
took effect from 1 April 1999.


INDUSTRIAL MINERALS GROUP        
1999 earnings $411 million, up 1%
Borates production at 561,000 tonnes, down 4%
Titanium dioxide feedstock production at 1,428,000 tonnes, down 7%

Rio Tinto's Industrial Minerals businesses include borates, titanium dioxide
feedstock, diamonds, industrial salt and talc. In 1999, these businesses
accounted for 24 per cent of Group turnover.

The contribution from Borax was seven per cent lower than in 1998 at $124
million.  Continued market strength in North America and recovery in Asia  
were outweighed by weakness elsewhere, particularly from competitive price
pressure in Europe.  Customer service was unaffected by the redesign of the 
Boron mine and remediation of its north wall following slippage during late
1997 and 1998.

Rio Tinto Iron & Titanium (RIT) earnings at $190 million were six per cent
higher, benefiting primarily from the reduction in South African tax rates in
early 1999.  Titanium dioxide feedstock production was slightly lower
following an interruption caused by a fire at the QIT smelter in June.  RIT's
markets were soft for most of the year and high- grade titanium dioxide
feedstocks are expected to demonstrate some measurement of over-supply in the
short and medium term.

1999 earnings from Argyle diamonds in Western Australia were up nine per cent
to $58 million compared with 1998.  While total output decreased 27 per cent
in 1999 mainly due to declining ore grades, the earnings increase reflected
strong sales performance in both price and volume terms.  Reserves were
revised upward, following further development of the pit made possible by
efficiency gains, and were 69.7 million tonnes at the year end. This will
extend the mine life to 2006, and future potential will continue to be
evaluated.

Performance at both Dampier (salt and gypsum) and Luzenac (talc) were similar
to 1998.


COPPER GROUP
1999 earnings $269 million,down 3%
Mined copper production at 860,000 tonnes, down
3% Refined copper production at 388,000 tonnes, up 19%
Mined gold production at 1,473,000 ounces, up 5%

Rio Tinto's Copper group accounted for 21 per cent of Group turnover, of which
69 per cent was from copper and the remainder mostly from gold.  Refined
copper production increased 19 per cent as a result of the first full year of
production from Escondida's oxide plant in Chile and improved performance at
Kennecott Utah Copper in the US. Average market prices for the year were down
from 75 cents in 1998 to 72 cents per pound in 1999, but by year end had
risen above 80 cents.

Mine production at Kennecott Utah Copper decreased slightly in 1999.  As
previously indicated, copper grades in 1999 were lower than the average 
life-of-mine grades, but will recover in mid 2000.  With the smelter complex
running at design rates, refined metal production increased 11 per cent in
1999 despite the failure of the flash converting furnace sidewall early in the
year.  The rebuild took four weeks, during which time maintenance took place
which had been scheduled for later in the year.  Higher ore grade and
throughput raised gold production at Barneys Canyon, now managed by Kennecott
Utah Copper, by 35 per cent.

As expected, Rio Tinto's share of copper production from Grasberg in Indonesia
was 35,500 tonnes lower in 1999 than in 1998, at 179,500 tonnes, because of a
lower proportion of production attributable to the joint venture.  Rio Tinto's
direct share of copper production from the expansion was 95,000 tonnes of
copper, compared with 136,000 tonnes in 1998.  Attributable gold production
was five per cent higher in 1999.

Completion of the Phase 3.5 expansion at Escondida increased sulphide ore 
treatment by 18 per cent.  Rio Tinto's share of production increased by almost
16 per cent to nearly 300,000 tonnes of copper.  The new oxide plant
contributed 40,000 tonnes of cathode copper to Rio Tinto's share of refined
metal.  The higher output from Escondida partially offset the expected
reduction from the unusually high contribution from the Grasberg joint venture
in 1998.

Rio Tinto's share of production at Palabora in South Africa decreased 14 per
cent as the open pit approaches the end of its life, requiring the processing
of lower grade stockpile ore. Copper production at Neves Corvo in Portugal
declined 12 per cent because of lower grades.  At the beginning of 2000, Rio
Tinto commenced the process of disposing of its interest in Neves Corvo.


COMALCO
1999 earnings $157 million, up 20%
Bauxite production at 8.5 million tonnes, up 29% 
Aluminium metal at 488,000 tonnes up 11%

Comalco, Rio Tinto's Australian aluminium subsidiary, generated 15 per cent of
Group turnover in 1999.  Rio Tinto increased its interest in Comalco from 70.4
per cent to 72.4 per cent during the year.  The cash aluminium price fell to
its lowest real terms level early in the year, but recovered as the year
progressed.  At 62 cents per pound, the average price for 1999 was similar to
1998.

Further volume and cost improvements in 1999 of $41 million included benefits
from Comalco's performance enhancement process.  Bauxite production increased
29 per cent in 1999, reflecting the benefits of the 1998 upgrade at Weipa in
Queensland.  All three smelters achieved record production levels resulting
from greater electrical efficiencies and operating improvements.  Rio Tinto's
share of primary aluminium output increased 11 per cent compared with 1998.


ENERGY GROUP
1999 earnings $220 million,down 3%
Coal production 139 million tonnes, up 22% 
Uranium oxide production 2,200 tonnes, down 3%

Rio Tinto's Energy group accounted for 19 per cent of Group turnover.

In the US, Rio Tinto's share of coal production increased 29 per cent, to more
than 108 million tonnes.  Along with increased demand and spot prices for
western US low sulphur coal, the increase reflects the first full year of
production at Jacobs Ranch and benefits from the 1998 expansions at Cordero
Rojo and Antelope.  Rio Tinto acquired the rights to an additional 32  million
tonnes of coal adjacent to Jacobs Ranch in 1999.  Permitting work is in
progress.

In Australia, Rio Tinto's share of coal production increased 11 per cent to 23
million tonnes in 1999.  In Queensland, increased efficiencies helped boost 
production, along with an initial contribution from Kestrel and the beneficial
interest in Blair Athol rising from 57 per cent to 71 per cent.

Rio Tinto and Coal & Allied Industries (CNA) merged their New South Wales coal
interests in 1999.  Rio Tinto has a 70.9 per cent interest in CNA.  The
Group's overall output in 1999 from New South Wales was lower mainly due to
higher production rates in the Hunter Valley in 1998 that were necessary to
complete contracts disrupted by industrial action.

Production and shipments were down at the Kaltim Prima coal mine in Indonesia
because of heavy rainfall in the first half of 1999.  Operations were
unaffected by civil disturbance during the second half of the year.

In January 2000, Rio Tinto sold its interest in the Carbones del Cerrejon coal
joint venture in Colombia.

In Namibia, uranium oxide production at the Rossing mine decreases slightly
compared with 1998, reflecting low demand.


GOLD & OTHER MINERALS GROUP
1999 earnings $123 million, up 151%
Gold production at 1,514,000 ounces, up 7%

Rio Tinto's Gold & Other Minerals group accounted for ten per cent of Group
turnover.  Gold & Other Minerals now includes Kennecott Minerals Company (KMC)
in the US, excluding Barneys Canyon which remains in the Copper group.  Rio
Tinto's share of gold production from KMC increased by ten per cent mainly
due to the higher ore grades and throughput, which boosted production at
Cortez/Pipeline by 17 per cent.  Production performance at other operations 
was healthy.

Following unusually wet weather in the first half of 1999 production at the
Kelian gold mine in Indonesia recovered in the second half.  Rio Tinto's share
of production decreased slightly to 396,000 ounces in 1999 compared with
414,000ounces in 1998.

Improved plant availability and throughput resulted in a 20 per cent increase
in production at the Lihir gold mine in Papua New Guinea.  Lihir achieved
record production in December, increasing Rio Tinto's share to 107,000 ounces
in 1999.

The Fortaleza nickel mine in Brazil achieved full production in mid - 1999,
producing 9,500 tonnes of nickel in matte during the year.


NEW PROJECT DEVELOPMENT UPDATE

In South Africa, the $170 million fifth mining plant at Richards Bay Minerals
was fully commissioned by early 2000.  The$437 million development of the
Palabora underground mine continued. Full production is scheduled to begin in
2003, which coincides with the closure of the open pit.

The feasibility study for the Phase 4 Expansion at the Escondida copper mine
in Chile is scheduled for completion in 2000.

Development of the $243 million Deep Ore Zone underground block cave mine at
Grasberg continued throughout the year.  Production is expected to commence in
July 2000, with target production of 25,000 tonnes of ore per day expected by
2004.

In November, the Canadian Government allowed the Diavik diamond project to 
move forward to the permitting and licensing stage, concluding that the
project would not have adverse environmental impacts.  However, work to move
material to the project site was suspended in January 2000 pending the
issuance of a temporary land use permit.

Work on the Comalco Alumina Project focused on engineering and process
optimisation.  Further development of energy and fiscal options and
site-specific engineering continued.


TECHNOLOGY

Since 1996, Rio Tinto has pursued a strategy to ensure that all significant 
computer systems and computer controlled plant and equipment across the group
sites would be Year 2000 compliant.  As a result, there were no significant
interruptions to production and services and no material impact on Rio Tinto
operations.

Capital and revenue expenditure related to the Group's Year 2000 programme has
been brought to account as and when incurred.  Since its inception, some $50
million (pre-tax) has been recognised in the accounts up to 31 December 1999,
of which $23 million relates to capital expenditure.  Total future costs are
not expected to exceed $5 million.  These amounts include internal labour and
overhead costs, met from normal operating budgets.  No significant information
technology projects have been deferred as a result of the Year 2000 activity.

The Technology group's Group Procurement programme, established in 1998, has
generated pre-tax annual savings in operating and capital expenditure of more
than $80 million since the programme began.  Review of procurement practices
is on going.


EXPLORATION

Total pre-tax exploration expenditure charged to the profit and loss account
for subsidiaries and joint ventures for 1999, was $136 million compared with
$162 million in 1998.

Global prioritisation of the exploration programme continued.  New programmes
for a variety of commodities were initiated in prospective terrain around the
world and other less prospective programmes were terminated.  Rio Tinto sold
the Las Cruces copper deposit in Andalucia, southern Spain, in 1999 and
divested the high grade, but modestly sized, Sepon copper/gold resource in
Laos.  Divestments are also underway for the Palu gold prospect in Sulawesi,
Indonesia and for part of the Pukaqaqa copper project in Peru.

In other copper/gold developments, drilling on the Kucing Liar and Deep
Grasberg projects at Grasberg in Indonesia added to the resource base and
drilling programmes on various projects in South and North America identified
potential new resources.  Exploration for iron ore continued at the Simandou
project in Guinea and various prospects in South America.  Gold exploration
programmes in Central Europe and South America provided encouraging results
and  programmes for various other commodities are continuing throughout the
world.  In addition, exploration in Turkey has identified a trona (soda ash)
deposit, which  will  be  further evaluated  in 2000.  Diamond exploration
continued in Australia, North America, Brazil and Southern Africa. Three
diamondiferous kimberlite pipes were discovered in Zimbabwe and bulk sampling
is underway.


For further information, please contact:

Media Relations                    Investor Relations

Alexis Fernandez                   Peter Jarvis
+ 44 20 7753 2305                  + 44 20 7753 2401

website: www.riotinto.com


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