Final Results - Year Ended 31 Dec 1999, Part 2

Rio Tinto PLC
24 February 2000


PART 2


PROFIT AND LOSS ACCOUNT
Years ended 31 December

  1999   1998   1999   1998                            1999   1998
       Restated      Restated                               Restated      
   A$m    A$m     £m     £m                            US$m   US$m 
                               Gross turnover
                               (including share of
                               joint ventures and
14,421 14,680  5,747  5,562    associates)            9,310  9,221

                               Share of
                               joint ventures'
(2,336)(2,380)  (931)  (902)   turnover              (1,508)(1,495)

                               Share of associates'
  (937)  (977)  (373)  (370)   turnover                (605)  (614)

                               Consolidated
11,148 11,323  4,443  4,290    turnover               7,197  7,112

(8,622)(9,337)(3,436)(3,538)   Operating costs       (5,566)(5,865)

                               Group operating
 2,526  1,986  1,007    752    profit                 1,631  1,247

                               Share of operating
                               profit of:
   787    737    314    280      Joint ventures         508    463
   294     60    117     23      Associates             190     38

                               Profit on ordinary
                               activities before
 3,607  2,783  1,438  1,055    interest               2,329  1,748

                               Net interest
  (376)  (297)  (150)  (113)   payable                 (243)  (187)

                               Amortisation of
                               discount related
   (85)   (84)   (34)   (32)   to provisions            (55)   (53)

                               Profit on ordinary
                               activities before
 3,146  2,402  1,254    910    taxation               2,031  1,508 

  (849)  (993)  (338)  (376)   Taxation                (548)  (624)


                               Profit on ordinary
                               activities after
 2,297  1,409    916    534    taxation               1,483    884

                               Attributable to
                               outside
  (311)  (293)  (124)  (111)   shareholders (equity)   (201)  (184)

                               Profit for the
                               financial year
 1,986  1,116    792    423    (net earnings)         1,282    700

                               Dividends to
(1,168)(1,143)  (465)  (433)   shareholders            (754)  (718)

                               Retained profit/(loss)
                               for the financial
   818    (27)   327    (10)   year                     528    (18)
 
                               Earnings per
                               ordinary
 145.0c  80.3c  57.8p  30.4p   share                   93.6c  50.4c

                               Adjusted earnings
 145.0c 126.4c  57.8p  47.9p   per ordinary share(c)   93.6c  79.4c

                               Dividends per share

               34.23p 31.99p   -  Rio Tinto plc        55.0c  52.0c

 87.11c 83.52c                 -  Rio Tinto Limited    55.0c  52.0c           
       

The profit for 1998 was stated after exceptional asset write-downs; these are
added back in the table below to arrive at adjusted earnings.

   1999   1998   1999   1998                            1999   1998
    A$m    A$m     £m     £m                            US$m   US$m
                               Profit for the
                               financial year (net
  1,986  1,116    792    423   earnings)               1,282    700 

                               Exceptional asset
                               write-downs included
                               in:

      -    388      -    147   Operating profit            -    244

                               Share of operating
                               profit of:

      -     91      -     34    Joint ventures             -     57
      -    226      -     86    Associates                 -    142

      -    (64)     -    (24)   Taxation                   -    (40)

      -    641      -    243   Net exceptional charge      -    403

  1,986  1,757    792    666   Adjusted earnings(c)    1,282  1,103

a) Diluted earnings per share figures are US 0.07 cents (1998: US 0.03 cents)
lower than the earnings per share figures above.
                                 
b) For the purpose of calculating earnings and adjusted earnings per share,
the weighted average number of Rio Tinto plc and Rio Tinto Limited shares
outstanding during the period was 1,370.0 million, being the average number of
Rio Tinto plc shares outstanding (1,061.0 million) plus the average number of
Rio Tinto Limited shares outstanding not held by Rio Tinto plc (309.0
million).

c) Adjusted earnings and adjusted earnings per share exclude exceptional items
of such magnitude that their exclusion is necessary in order that adjusted
earnings reflect the underlying performance of the Group.

d) The results for both years relate wholly to continuing operations.

CASH FLOW STATEMENT
Years ended 31 December

  1999   1998  1999   1998                             1999    1998
       Restated     Restated                                Restated
   A$m    A$m    £m     £m                             US$m    US$m
                              Cash flow
                              from operating
 3,750  4,056 1,494   1,537   activities(see below)    2,421  2,548
 
                              Dividends from
                              joint ventures
   920    833   367     315   and associates             594    523

 4,670  4,889 1,861   1,852                            3,015  3,071

   178    317    71     120   Interest received          115    199

  (455)  (568) (181)   (215)  Interest paid             (294)  (357)
 
                              Dividends paid to
  (173)  (202)  (69)    (77)  outside shareholders      (112)  (127)

                              Returns on investment
  (450)  (453) (179)   (172)  and servicing of finance  (291)  (285)

  (601)  (700) (240)   (265)  Tax paid                  (388)  (440)

                              Purchase of
                              property, plant
(1,202)(1,676) (479)   (635)  and equipment             (776)(1,053)

                              Funding of Group
                              share of joint ventures'
                              and associates'
   (82)  (271)  (33)   (103)  capital expenditure        (53)  (170)

                              Other funding of joint
                              ventures and associates
   618    306   246     116   repaid                     399    192 

                              Exploration and
                              evaluation
  (231)  (287)  (92)   (109)  expenditure               (149)  (180)

                              Sale of property,
                              plant and equipment
    93     71    37      27   and other investments       60     45

                              Capital expenditure                  
                              and financial
  (804)(1,857) (321)   (704)  investment                (519)(1,166)

                              Purchase of subsidiaries,
                              joint ventures
  (505)  (783) (201)   (297)  and associates            (326)  (492)

                              Sale of subsidiaries,
                              joint ventures and
    73      5    29       2   associates                  47      3

                              Acquisitions and
  (432)  (778) (172)   (295)  disposals                 (279)  (489)

                              Equity dividends paid -
(1,104)(1,159) (440)   (439)  Rio Tinto shareholders    (713)  (728)

                              Cash inflow/(outflow) before
                              management of liquid
                              resources and       
 1,279    (58)  509     (23)  financing                  825    (37) 

                              Net cash flow from
                              management of
   632    551   252     209   liquid resources           408    346 

                              Ordinary shares  
    12      8     5       3   issued                       8      5

   (28)  (592)  (11)   (224)  Shares repurchased         (18)  (372)

                              Loans received
(2,152)   275  (857)    104   less repaid             (1,389)   173 

                              Management of liquid
                              resources and
(1,536)   242  (611)     92   financing                 (991)   152

                              (Decrease)/increase
  (257)   184  (102)     69   in cash                   (166)   115

                              Cash flow from
                              operating
                              activities
                             
                              Group operating profit
                              from continuing
 2,526  1,986 1,007     752   activities               1,631  1,247

                              Exceptional asset
     -    388     -     147   write-downs                  -    244

                              Depreciation and
 1,250  1,197   498     453   amortisation               807    752

                              Exploration and
                              evaluation charged
   211    258    84      98   against profit             136    162

   135    194    54      74   Provisions                  87    122

                              Utilisation of
  (160)  (188)  (64)    (71)  provisions                (103)  (118)

                              Change in
    64    132    25      50   inventories                 41     83 

                              Change in accounts
                              receivable and
   (53)     3   (21)      1   prepayments                (34)     2 

                              Change in accounts
                              payable and
   (74)    68   (30)     26   accruals                   (48)    43 

  (149)    18   (59)      7   Other items                (96)    11 

                              Cash flow from
 3,750  4,056 1,494   1,537   operating activities     2,421  2,548


Net debt at 31 December 1999 of US$2,429 million compares with US$3,258
million at 31 December 1998.  The decrease of US$829 million comprises the
cash inflow before management of liquid resources and financing of US$825
million plus other items of US$4 million.


BALANCE SHEET
At 31 December

  1999   1998   1999   1998                           1999    1998
       Restated      Restated                               Restated
   A$m    A$m     £m     £m                           US$m    US$m
                              Intangible fixed assets

   335    468    137    172   Goodwill                 221     287

                              Tangible fixed assets
                              
                              Property, plant
14,526 15,117  5,955  5,573   and equipment          9,588   9,274

                              Exploration and
                              evaluation
   209    186     86     69   properties               138     114

                              Investments                            
                              Share of gross assets               
 3,589  3,526  1,471  1,301   of joint ventures      2,369   2,163

                              Share of gross
                              liabilities                           
(1,630)(1,553)  (668)  (573)  of joint ventures     (1,076)   (953)

 1,959  1,973    803    728                          1,293   1,210

                              Investments in
   814  1,570    334    579   associates/other         537     963

 2,773  3,543  1,137  1,307                          1,830   2,173

17,843 19,314  7,315  7,121                         11,777  11,848

                             Current assets

 1,933  2,108    793    777  Inventories             1,276   1,293

                             Accounts receivable
 2,677  2,983  1,098  1,100  and prepayments         1,767   1,830

   233    673     96    248  Investments               154     413

                             Cash at bank
   962  1,472    394    543  and in hand               635     903

 5,805  7,236  2,381  2,668                          3,832   4,439

                             Creditors due within
                             one year

                             Short term
(2,665)(4,720)(1,093)(1,740) borrowings             (1,759) (2,896)

                             Accounts payable
(2,651)(3,077)(1,087)(1,135) and accruals           (1,750) (1,888)

(5,316)(7,797)(2,180)(2,875)                        (3,509) (4,784)

                             Net current assets/
   489   (561)   201   (207) (liabilities)             323    (345)

                             Total assets less
                             current
18,332 18,753  7,516  6,914  liabilities            12,100  11,503

                             Creditors due after
                             one year

                             Medium and long
(2,210)(2,735)  (906)(1,008) term borrowings        (1,459) (1,678)


                             Provisions for
                             liabilities and
(4,287)(4,455)(1,758)(1,642) charges                (2,830) (2,733)

                             Outside shareholders'
(1,085)(1,100)  (445)  (406) interests (equity)       (715)   (673)

10,750 10,463  4,407  3,858                          7,096   6,419

                             Capital and reserves

                             Share capital
   259    318    106    117  - Rio Tinto plc           171     195

                             - Rio Tinto Limited
                               (excluding Rio Tinto
 1,367  1,364    560    503     plc interest)          902     837

                             Share premium
 2,592  2,867  1,061  1,057  account                 1,711   1,759

   195    150     80     55  Other reserves            129      92

                             Profit and loss
 6,337  5,764  2,600  2,126  account                 4,183   3,536

                             Shareholders' funds             
10,750 10,463  4,407  3,858  (includes non-equity)   7,096   6,419

(a) In accordance with Financial Reporting Standard No. 4 all commercial paper
is classified as short term borrowings though US$1,200 million is backed by
medium term facilities.  Under US and Australian GAAP this amount would be
grouped with medium term borrowings.
  
(b) At 31 December 1999, Rio Tinto plc had 1,061.2 million ordinary shares in
issue and Rio Tinto Limited had 309.2 million shares in issue, excluding those
held by Rio Tinto plc.

(c) Shareholders' funds at 31 December 1998 have been reduced by US$293
million as a result of the implementation of FRS 12.

(d) The reduction in goodwill in the year to 31 December 1999 includes a
reallocation of US$33 million to property, plant and equipment.


RECONCILIATION WITH AUSTRALIAN GAAP
At 31 December

  1999   1998   1999   1998                            1999   1998
       Restated      Restated                               Restated
   A$m    A$m     £m     £m                            US$m   US$m

                              Adjusted earnings
 1,986  1,757    792    666   reported under UK GAAP  1,282   1,103

                              Exceptional asset
     -   (641)     -   (243)  write-downs                 -    (403)

                              Net earnings under
 1,986  1,116    792    423   UK GAAP                 1,282     700

                              Increase/(decrease)
                              net of tax in 
                              respect of:

                              Abnormal increase in
  (454)     -   (181)     -   provisions               (293)      -
              
                              Goodwill
  (235)  (264)   (94)  (100)  amortisation             (152)  (166)

    (5)     5     (2)     2   Taxation                   (3)     3 

    17      -      7      -   Other                      11      -

                              Net earnings under      
 1,309    857    522    325   Australian GAAP           845    537

                              Earnings per ordinary
                              share under
  95.5c  61.7c  38.1p  23.4p  Australian GAAP          61.7c  38.6c

                              Australian GAAP earnings
                              before abnormal items and
                              exceptional asset write-
                              downs

 1,625  1,498    648    568   Net earnings             1,049    940

                              Earnings per
 118.6c 107.8c  47.3p  40.9p  ordinary share           76.6c  67.6c

                              Shareholders' funds
10,750 10,463  4,407  3,858   under UK GAAP            7,096  6,419

                              Increase/(decrease) net
                              of tax in respect of:

 2,407  2,862    987  1,055    Goodwill               1,589  1,756

   (77)   (78)   (32)   (29)   Taxation                 (51)   (48)

                               Reversal of additional
     -    477      -    175    provisions under FRS 12    -    293

     3    (15)     1     (5)   Other                      2     (9)

                             Shareholders' funds under
13,083 13,709  5,363  5,054  Australian GAAP          8,636  8,411


Diluted earnings per share under Australian GAAP are US 0.04 cents (1998 - US
0.02 cents) less than the above earnings per share figures.

The Group's financial statements have been prepared in accordance with
generally accepted accounting principles in the United Kingdom (UK GAAP),
which differ in certain respects from generally accepted accounting principles
in Australia (Australian GAAP).  These differences relate principally to the
following items, and the approximate effect of each of the adjustments to net
earnings and shareholders' funds which would be required under Australian GAAP
is set out above.

Abnormal items:
Abnormal items of US$204 million arise in 1999 under Australian GAAP
reporting, comprising a charge of US$293 million relating to FRS 12 (see
below) and a credit of US$89 million resulting from changes in Australian and
South African tax rates.  The US$89 million benefit to earnings arises from
the restatement of deferred tax balances in 1999.  Apart from such
adjustments, the Group's Australian earnings were taxed at 36 per cent.  Had
they been taxed at the 30 per cent Australian corporate tax rate which will
apply in 2001, earnings would have been some US$40 million higher.  In 2000,
the Australian tax rate is 34 per cent.

Abnormal increase in provisions:
The introduction of FRS 12 has led to changes in the Group's accounting policy
for closedown and restoration costs under UK GAAP.  The new accounting policy
is acceptable under Australian GAAP.  Therefore, to minimise differences
between the Group's accounting policies under UK and Australian GAAPs, the
Group has applied the new accounting policy under Australian GAAP also.  Under
UK GAAP the effect of the change is recorded as a prior year adjustment, which
reduces opening shareholders' funds by US$293 million.  Under Australian GAAP
the impact of this change in policy must be charged against earnings as an
abnormal item in the year in which the change occurs.

Exceptional asset write-downs:
Following the implementation of Financial Reporting Standard 11 in 1998,
impairment of fixed assets under UK GAAP  is measured by reference to the
discounted value of the cash flows expected to be generated by the relevant
assets.  An exceptional after-tax impairment charge of US$403 million was
taken up in UK GAAP earnings for 1998 on the basis of this new standard.  To
minimise differences between accounting policies under UK and Australian
GAAPs, the Group applied the new accounting policy under Australian GAAP also.

Goodwill:
For 1997 and prior years UK GAAP permitted the write off of purchased goodwill
on acquisition directly against reserves. Under Australian GAAP goodwill is
capitalised and amortised by charges against income over the period during
which it is expected to be of benefit subject to a maximum of 20 years.
Goodwill previously written off directly to reserves in the UK GAAP accounts
has been reinstated and amortised for the purpose of the reconciliation
statements.  For acquisitions in 1998 and subsequent years, goodwill is
capitalised under UK GAAP, in accordance with Financial Reporting Standard 10.

Taxation:
Under UK GAAP, provision is made for deferred tax under the liability method
to the extent that, in the opinion of the directors, it is probable that a tax
liability will become payable within the foreseeable future.  Under Australian
GAAP deferred tax is provided for in full.

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

  1999   1998   1999   1998                            1999   1998
       Restated      Restated                               Restated  
   A$m    A$m     £m     £m                            US$m   US$m

                              Profit for the
 1,986  1,116    792    423   financial year          1,282    700

(1,168)(1,143)  (465)  (433)  Dividends                (754)  (718)

   818    (27)   327    (10)                            528    (18)

                              Adjustment on                             
  (515)   306    228   (176)  currency translation      159   (212)

                              Repurchased share capital
   (16)  (584)    (6)  (221)  less issued               (10)  (367)

                              Goodwill arising on
     -    (45)     -    (17)  1997 acquisition            -    (28)

   287   (350)   549   (424)                            677   (625)

                              Opening shareholders'
                              funds (originally
                              US$6,712m at 1 Jan 1999
                              before deducting prior
                              year adjustment of
10,463 10,813  3,858  4,282   US$293m)                6,419  7,044

                              Closing shareholders'
10,750 10,463  4,407  3,858   funds                   7,096  6,419


PRIMA FACIE TAX RECONCILIATION

  1999   1998   1999   1998                            1999   1998
   A$m    A$m     £m     £m                            US$m   US$m

                              Profit on ordinary
                              activities before
 3,146  2,402  1,254    910   taxation                2,031  1,508

                              Actual taxation charge
  (849)  (993)  (338)  (376)  for the year             (548)  (624)

                              Prima facie tax
                              payable at UK
                              rate of 30.25%
   951    743    379    282   (1998-31%)                614    467

                              Higher rate of taxation
    88     68     35     26   on Australian earnings     57     43

                              Lower rate of tax relief
     -    153      -     58   on asset write downs        -     96

                              Favourable/(adverse)
   190    (29)    76    (10)  variation                 123    (18)

                              The above variation is 
                              explained as follows:

                              Other tax rates
                              applicable outside the
  (124)  (156)   (49)   (59)  UK and Australia          (80)   (98)

                              Research, development
                              and other investment
    12     22      5      8   allowances                  8     14
 
                              Resource depletion
                              and other depreciation
    73     73     29     28   allowances                 47     46
        
                              Advance Corporation Tax -
    11     48      4     18   net recovery                7     30

                              Impact of tax rate
                              changes on deferred
   166      -     66      -   tax balances              107      - 

    52    (16)    21     (5)  Other                      34    (10)

                              Total favourable/(adverse)
                              variation in taxation
   190    (29)    76    (10)  charge                    123    (18)


EXPLORATION AND EVALUATION PROPERTIES

  1999   1998   1999   1998                            1999   1998
   A$m    A$m     £m     £m                            US$m   US$m
                              At cost less amounts
                              written off

 1,270  1,067    468    423   At 1 January               779   696

                              Adjustment on
   (15)    35     46    (19)  currency translation        49   (22)

   231    287     92    109   Expenditure in year        149   180
 
                              Charged against
   (60)  (132)   (24)   (50)  profit for the year        (39)  (83)

                              Disposals, transfers
  (229)    13    (91)     5   and other movements       (148)    8 

 1,197  1,270    491    468   At 31 December             790   779
                              
                              Provision/amortisation

(1,084)  (871)  (399)  (345)  At 1 January              (665) (568)

                              Adjustment on 
    18    (47)   (37)     9   currency translation       (38)    7 

                              Charged against profit
  (151)  (126)   (60)   (48)  for the year               (97)  (79)

                              Disposals, transfers and
   229    (40)    91    (15)  other movements            148   (25)

  (988)(1,084)  (405)  (399)  At 31 December            (652) (665)

                              Net balance sheet
   209    186     86     69   amount                     138   114


RIO TINTO FINANCIAL INFORMATION BY BUSINESS UNIT

                      Net        Gross      Operating        Capital
        Rio Tinto   earnings    turnover      assets     expenditure
         Interest  1999   1998  1999  1998  1999  1998    1999  1998
                                              Restated
                %  US$m   US$m  US$m  US$m  US$m  US$m    US$m  US$m

Iron Ore    100(f)  259    345   969 1,026 1,454   1,365   105  322

Industrial
Minerals            411    407 2,233 2,192 2,641   2,649   315  208

Copper
Kennecott Utah
Copper        100    74     54   720   712 3,180   3,208   112  197
Escondida      30    84     71   357   297   460     518     -   79
Freeport     14.6     9     14   267   231   156     384           
Freeport Joint
Venture        40    82    135   272   293   385     407    21   55  
Palabora       46.5  27     21   259   326   358     319    79   94
Somincor       49    (7)   (17)   52    57    78      86           

                    269    278 1,927 1,916 4,617   4,922   212  425
Aluminium -
Comalco        72.4 157    131 1,412 1,370 1,686   1,613    77  103

Energy
Kennecott
Energy        100    76     60   831   633   681     780    29   50
Pacific Coal  100    80     67   309   248   479     225     3   13
Kaltim Prima
Coal           50    26     46   175   225    21      27            
Coal & Allied  70.9  28     52   346   435   246     230     3   (3)
Rossing        69    19     10   134   154   129     125    12   10
Other energy         (9)    (8)   12    30    27      27     -    -

                    220    227 1,807 1,725 1,583   1,414    47   70

Gold and
other minerals
Kennecott
Minerals      100    60     34   249   240   220     248     -    7
Kelian         90    (3)     3   126   135   183     226     5    4
Peak Gold     100     3      -    38    33    34      40     6    4
Rio Tinto
Zimbabwe       56     4      5    36    38     7       7     4    7
Brazil               37    (11)  123   103   156     139    16   28
Rio Tinto
Aluminium            13     13   231   263    49      57     2    5
Other gold
and minerals          9      5   156   177   138     109     -    -

                    123     49   959   989   787     826    33   55

Other items          33   (158)    3     3    15     (20)  (18)  (3)
Exploration and
evaluation         (107)  (132)                                    
Net interest        (83)   (44)
Adjusted earnings 1,282  1,103
Exceptional asset
write-downs           -   (403)

Total             1,282    700 9,310 9,221 12,783 12,769   771 1,180

Add back minority interest                    715    673

Unallocated net current financial items    (1,398)(1,939)

Total assets less current liabilities      12,100 11,503


(a)  Net earnings represent after tax earnings attributable to the Rio Tinto
Group.  Earnings of subsidiaries are stated before exceptional items and
interest charges but after the amortisation of the discount applied in
establishing the book value of provisions.  Earnings attributable to joint
ventures and associates include interest charges.

(b)  Gross Turnover includes 100 per cent of subsidiaries' turnover and the
Groups share of turnover of joint ventures and associates.

(c)  Operating assets of subsidiaries comprise total assets less cash and
current asset investments less current non-financial liabilities and are now
net of outside interests and goodwill.  1998 figures have been restated to
deduct outside interests and goodwill. For joint ventures and associates, Rio
Tinto's net investment is shown.  For joint ventures and associates shown
above, Rio Tinto's share of operating assets, defined as for subsidiaries are
as follows: Escondida US$739m (1998 - US$754m), Freeport joint venture US$453m
(1998 - US$442m), Freeport associate US$555m (1998 - US$568m), Somincor
US$157m (1998 - US$140m), Kaltim Prima US$271m (1998 - US$275m).

(d)  Capital expenditure comprises purchases of property, plant and equipment
plus direct funding provided to joint ventures and associates for Rio Tinto's
share of their capital expenditure, less disposals of property, plant and
equipment.  The figures include 100 per cent of subsidiaries' capital
expenditure but exclude that of joint ventures and associates except where
directly funded by Rio Tinto.

(e)  Business units have been classified above according to the Group's
management structure.  Generally, this structure has regard to the primary
product of each business unit but there are exceptions.  The Copper group
includes the gold revenues of Kennecott Utah Copper and Freeport (Rio Tinto
share).  The earnings of Rio Tinto Aluminium are included in Gold and Other
Minerals.  This summary differs, therefore, from the Product Analysis in which
the contributions of individual business units are attributed to several
products as appropriate.  Kennecott Minerals, excluding Barneys Canyon, is now
within Gold & Other Minerals.

(f) Iron Ore includes Hamersley and also HISmelt(r), which was previously
included in 'Other'.  Comparative figures have been restated.

(g) Other items include a credit of US$74 million which results from the
reduction in future Australian tax rates.

PRODUCT ANALYSIS

  1999   1998  1999  1998   1999  1998                 1999    1998
   A$m    A$m    £m    £m      %     %                 US$m    US$m
                                       Gross Turnover

 2,051  2,082   817   789   14.2  14.2 Copper         1,324   1,308           
          
 1,312  1,371   523   519    9.1   9.3 Gold             847     861 
                                       (all sources)

 1,526  1,675   608   634   10.6  11.4 Iron ore         985   1,052     

 2,590  2,511 1,032   951   18.0  17.1 Coal           1,672   1,577

 2,547  2,600 1,015   985   17.7  17.7 Aluminium      1,644   1,633

                                       Industrial
 3,563  3,631 1,420 1,376   24.7  24.7 minerals       2,300   2,281

   832    810   332   308    5.7   5.6 Other products   538     509

14,421 14,680 5,747 5,562  100.0 100.0 Total          9,310   9,221

                                       Net attributable profit

                                       Copper, gold and
   499    497   199   188   22.4  21.7 by-products      322     312

   404    559   161   212   18.1  24.4 Iron ore         261     351

   311    347   124   131   14.0  15.2 Coal             201     218

   266    229   106    87   12.0  10.0 Aluminium        172     144    

                                       Industrial 
   655    657   261   249   29.4  28.7 Minerals         423     413

    94     (2)   38   (1)    4.1     - Other products    60      (1)
     
 2,229  2,287   889   866  100.0 100.0                1,439   1,437

                                       Exploration and
  (166)  (210)  (66)  (80)             evaluation      (107)   (132)

   (77)  (320)  (31) (120)             Other items      (50)   (202)

                                       Adjusted
 1,986  1,757   792   666              earnings       1,282   1,103

                                       Exceptional
                                       asset write-
     -   (641)    -  (243)             downs              -    (403)
 
 1,986  1,116   792   423              Total          1,282     700   
 

GEOGRAPHICAL ANALYSIS

  1999   1998  1999  1998   1999  1998                 1999    1998
   A$m    A$m    £m    £m      %     %                 US$m    US$m
                                       Turnover by
                                       country of
                                       origin

 4,549  4,321 1,813 1,637   31.5  29.4 North America  2,937   2,714           


                                       Australia and
 5,302  5,476 2,113 2,075   36.8  37.3 New Zealand    3,423   3,440           

   860    788   343   299    6.0   5.4 South America    555     495

 1,461  1,686   582   639   10.1  11.5 Africa           943   1,059

 1,301  1,396   519   529    9.0   9.5 Indonesia        840     877

                                       Europe and
   948  1,013   377   383    6.6   6.9 other countries  612     636

14,421 14,680 5,747 5,562  100.0 100.0 Total          9,310   9,221

                                       Net attributable
                                       profit by origin

   587    557   234   211   27.8  30.5 North America    379     350

                                       Australia and
   942    949   375   359   44.5  52.0 New Zealand      608     596

   108     27    43    10    5.1   1.5 South America     70      17      

   215    207    86    78   10.2  11.3 Africa           139     130       

   160    293    64   111    7.5  16.0 Indonesia        103     184 

                                       Europe and
  103   (206)   41   (76)   4.9 (11.3) other countries   66    (130)

 2,115  1,827   843   693  100.0 100.0                1,365   1,147

  (129)   (70)  (51)  (27)             Net interest     (83)    (44)

                                       Adjusted
 1,986  1,757   792   666              earnings       1,282   1,103

                                       Exceptional
                                       asset write
     -   (641)    -  (243)             downs              -    (403)

 1,986  1,116   792   423              Total          1,282     700

                                       Turnover by
                                       destination

 4,559  4,462 1,817 1,691   31.6  30.4 North America  2,943   2,803
 
 3,464  3,615 1,380 1,370   24.0  24.6 Europe         2,236   2,271

 2,207  2,227   880   844   15.3  15.2 Japan          1,425   1,399

 2,635  2,565 1,050   972   18.3  17.5 Other Asia     1,701   1,611

                                       Australia and
   940    936   375   355    6.5   6.4 New Zealand      607     588

   616    875   245   330    4.3   5.9 Other            398     549

14,421 14,680 5,747 5,562  100.0 100.0 Total          9,310   9,221


RECONCILIATION WITH US GAAP
At 31 December

  1999   1998   1999   1998                             1999   1998
       Restated      Restated                               Restated
   A$m    A$m    £m     £m                              US$m   US$m

                              Adjusted earnings
 1,986  1,757    792    666   under UK GAAP            1,282  1,103

                              Exceptional asset
     -   (641)     -   (243)  write-downs                  -   (403)

 1,986  1,116    792    423   Net earnings under        1,282    700
                              UK GAAP              

                              Increase/(decrease)
                              net of tax in
                              respect of:
                             
                              Goodwill
  (173)  (194)   (69)   (74)  amortisation              (112)  (122)
  
   (90)   248    (36)    94   Asset write-downs          (58)   156 

                              Provision against
   (76)     -    (30)     -   receivable                 (49)     -

   (74)    43    (30)    16    Other                     (48)    27

                               Income before cumulative
                               effect of change in 
 1,573  1,213    627    459    accounting principle     1,015    761

                               Cumulative effect of
                               change in accounting
                               principle for start-
   (88)     -    (35)     -    up costs                  (57)     -

                               Net income under
 1,485   1,213    592    459   US GAAP                    958    761

                               Basic earnings per
                               ordinary share
                               under US GAAP                      

                               Before cumulative
                               effect of change in
 114.8c   87.3c 45.8p  33.0p   accounting principle     74.1c  54.8c

                               After cumulative
                               effect of change in
 108.4c   87.3c 43.2p  33.0p   accounting principle     69.9c  54.8c

                               Shareholders' funds
10,750  10,463 4,407  3,858    under UK GAAP           7,096  6,419

                               Increase/(decrease 
                               net of tax in 
                               respect of:

 3,186  3,625  1,306  1,337      Goodwill              2,103  2,224
 
   (77)   (78)   (32)   (29)     Taxation                (51)   (48)

   800    792    328    292      Proposed dividends      528    486 

   148    254     61     94      Asset write-downs        98    156

                                 Reversal of
                                 additional provisions
   376    477    154    175      under FRS 12            248    293 

   (98)     -    (40)      -     Start-up costs          (65)     - 

   (44)   (41)   (18)   (15)     Other                   (29)   (25)

                                 Shareholders' funds
15,041 15,492  6,166  5,712      under US GAAP         9,928  9,505


Diluted earnings per share under US GAAP are US 0.05 cents (1998: US 0.02
cents) less than the above earnings per share figures.

The Group's financial statements have been prepared in accordance with
generally accepted accounting principles in the United Kingdom (UK GAAP),
which differ in certain respects from those in the United States (US GAAP). 
The approximate effect of adjusting net earnings and shareholders' funds for
the following differences in treatment under US GAAP is set out above.

Financial Reporting Standard 12 (FRS 12)
Changes in accounting policy on introduction of FRS 12 have led to a prior
year adjustment under UK GAAP.  This reduces shareholders' funds by US$293m.
There has been no corresponding change in US accounting standards.  The prior
year adjustment has therefore been reversed in the calculation of
shareholders' funds under US GAAP.

Under US GAAP, receivables whose recovery is considered probable are
recognised in the balance sheet.  Under UK accounting standard FRS 12, certain
receivables may only be recognised when their recovery is virtually certain. 
This can result in timing differences in the recognition and de-recognition of
such receivables.

Start-up costs
The new US pronouncement, Statement of Position 98-5, Reporting on the Costs
of Start-up Activities (SOP 98-5), requires that the cost of start-up
activities are expensed as incurred. The cumulative effect of the change in
accounting principle in adopting SOP 98-5 has been recorded in 1999. Under UK
GAAP start-up costs are amortised over the economic lives of the relevant
assets.

Asset write-downs
Following the implementation of Financial Reporting Standard 11 in 1998,
impairment of fixed assets under UK GAAP is recognised and measured by
reference to the discounted value of the cash flows expected to be generated
by the asset.  Under US GAAP, impairment is recognised only when the
anticipated undiscounted cash flows are insufficient to recover the carrying
value of the asset.  Where an asset is found to be impaired under US GAAP, the
amount of such impairment is generally similar under US GAAP to that computed
under UK GAAP.

Goodwill
For 1997 and prior years, UK GAAP permitted the write off of purchased
goodwill on acquisition directly against reserves. Under US GAAP, goodwill is
capitalised and amortised by charges against income over the period during
which it is expected to be of benefit, subject to a maximum of 40 years.
Goodwill previously written off directly to reserves in the UK GAAP accounts
has been reinstated and amortised for the purpose of the reconciliation
statements. For acquisitions in 1998 and subsequent years, goodwill is
capitalised under UK GAAP in accordance with FRS 10.

Proposed dividends
Under UK GAAP, ordinary dividends are provided for in the financial year in
respect of which they are paid.  Under US GAAP, such dividends are not
provided for until formally declared by the board of directors or approved by
the shareholders.


METAL PRICES AND EXCHANGE RATES
Years ended 31 December
                                              Year    Year
Metal prices                                  1999    1998    Change

Average market prices for the year were:

Copper                      - US cents/lb      72c     75c     (4%)

Aluminium (3 month forward) - US cents/lb      62c     62c      -   

Gold                        - US$/troy oz   US$279  US$294     (5%)


Exchange Rates in US$
                Annual Average                  Year end
                1999     1998    Change       1999     1998   Change

Sterling        1.62     1.66      (2%)       1.61     1.66     (3%)

Australia       0.65     0.63      +2%        0.66     0.61     +8%

Canada          0.67     0.67       -         0.69     0.65     +6% 

South Africa    0.16     0.18      (9%)       0.16     0.17     (4%)

ACCOUNTING PRINCIPLES

The financial information included in this report has been prepared in
accordance with United Kingdom Accounting Standards and an Order under
sub-section 340 of the Australian Corporations Law issued by the Australian
Securities and Investments Commission on 12 January 1998.  The financial
information has been drawn up on the basis of accounting policies consistent
with those applied in the accounts for the year to 31 December 1998, except
for the implementation of Financial Reporting Standard 12 (FRS 12).

FRS 12 sets out accounting principles for provisions, contingent liabilities
and contingent assets.  It required significant changes in the Group's
accounting policy for close down and restoration costs.  Under the previous
accounting policy, provisions were built up through annual charges against
profit designed to accumulate the projected closure costs, which were not
discounted, over the period from the year of introduction of the policy to the
end of the productive life of each operation.  Under FRS 12, provision must be
made for the net present value of closure costs in the accounting period when
the environmental disturbance occurs.  The costs so provided are capitalised
and amortised over future production.  Also, FRS 12 does not permit the
inclusion of certain receivables in the balance sheet unless recovery is
virtually certain.  The changes in accounting policy on introduction of FRS 12
have resulted in a prior year adjustment, which reduces opening shareholders'
funds by US$293 million.  This prior year adjustment is based on the amounts
that would have been charged against profits from previous years if FRS 12 had
been applied consistently in the past.

The application of FRS 12 has not had a material effect on net earnings for
1999 and 1998 and the latter has not, therefore, been restated. However, US$53
million, previously reported within 1998  operating profit, is now shown
separately in the profit and loss account as 'Amortisation of discount related
to provisions'.  This annual charge to the profit and loss account results
from the amortisation or 'unwinding' of the discount applied in establishing
the net present value of the provisions.

FRS 11 introduced detailed rules for assessing the impairment of fixed assets.
It was implemented by the Group in the full year accounts for 1998, and led
to exceptional asset write-downs of US$403 million.

FINANCIAL INFORMATION

This preliminary announcement contains financial information which has been
extracted from the latest financial statements as restated to apply FRS 12. 
This announcement does not constitute the full financial statements, which
will be approved by the Board and reported on by the auditors on 6 March 2000
and subsequently filed with the Registrar of Companies and the Australian
Securities and Investments Commission.  The accounts of Rio Tinto plc and Rio
Tinto Limited for 1998 were the subject of an unqualified audit report and
have been delivered to the Registrar of Companies in the UK and the Australian
Securities and Investments Commission respectively.