Hope Downs feasibility

Rio Tinto PLC
21 December 2007



Rio Tinto approves feasibility study for new Hope Downs mine



21 December 2007



The Hope Downs Joint Venture (managed by Rio Tinto) has approved a feasibility
study to expand the Hope Downs 4 project as part of the Rio Tinto programme to
reach a Pilbara annual capacity of 320 million tonnes of iron ore by 2012.


The study, which will cost an estimated US$71 million, will assess the deposit
as an extension of the existing Hope Downs Joint Venture (50:50 owned by Rio
Tinto and Hope Downs Iron Ore Pty Ltd.). The study will incorporate the recently
completed 50,000 metre in-fill drilling programme at Hope Downs 4.


Rio Tinto Iron Ore chief executive Sam Walsh said: 'The Hope Downs 4 deposit
offers excellent potential as part of our extension into the east Pilbara
region, especially as we ramp up towards 320 Mtpa capacity over the next five
years.


'This potential highlights the degree of flexibility that Rio Tinto enjoys to
capitalise on existing infrastructure through the development of new world-class
mines. This is an advantage that we emphasised in our annual investor
presentation on 26 November.'


Hope Downs Iron Ore Pty Ltd chairman Mrs Gina Rinehart said: 'Following on from
our initial pre-feasibility studies, we hope the expanded study will
successfully support our vision for the area, which includes more mines being
developed adjacent to Hope Downs 4, and the extension of the Lang Hancock
Railway to them.'



The Hope Downs 4 deposit is located 35 kilometres northwest of the town of
Newman and 45 kilometres east of the Hope Downs 1 mine. This mine began
production in November 2007 and is expected to reach 30 Mtpa capacity in early
2009.



The proximity of Hope Downs 4 to other deposits fully or part-owned by Rio Tinto
promises significant potential synergies and option value for Rio Tinto Iron
Ore.



The Hope Downs 4 deposit consists of three main areas of mineralization of
approximately equal size extending over a length of eight kilometres. The
deposit has been re-estimated after completion of an 18,000-metre in-fill
drilling programme in 2006. The contained high grade Resource ( >=60% Fe) is
made up of 98.6Mt @ 62.3% Fe of Indicated Mineral Resource and 206.1Mt @ 62.4% 
Fe of Inferred Mineral Resource.



A range of government and environmental approvals would be required before
development of a Hope Downs 4 mine could proceed.



The Resource for Hope Downs 4 has been prepared in accordance with the JORC Code
(2004) by suitably qualified competent person, as detailed below:



  • Competent Person Resources: John Phillips a full time employee of RTIO
    with 20 years' experience in geology roles, of which 13 years are in Iron
    Ore. BSc (Geology) 1987. Member AusIMM - No. 210415



About Rio Tinto



Rio Tinto is a leading international mining group headquartered in the UK,
combining Rio Tinto plc, a London listed company, and Rio Tinto Limited, which
is listed on the Australian Securities Exchange.



Rio Tinto's business is finding, mining, and processing mineral resources. Major
products are aluminium, copper, diamonds, energy (coal and uranium), gold,
industrial minerals (borax, titanium dioxide, salt, talc) and iron ore.
Activities span the world but are strongly represented in Australia and North
America with significant businesses in South America, Asia, Europe and southern
Africa.



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.



Subject to the requirements of the Takeover Code, none of Rio Tinto, any of its
officers or any person named in this announcement with their consent or any
person involved in the preparation of this announcement makes any representation
or warranty (either express or implied) or gives any assurance that the implied
values, anticipated results, performance or achievements expressed or implied in
forward-looking statements contained in this announcement will be achieved.



For further information, please contact:

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Investor Relations, Australia                         Investor Relations, London
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Website:  www.riotinto.com
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