Hope Downs mine approved

Rio Tinto PLC
27 April 2006


US$1 billion Hope Downs mine development approved


Rio Tinto today announced it will immediately start construction of the US$1
billion Hope Downs iron ore project in Western Australia, following Western
Australian Government approval and the ratification of the Hope Downs Joint
Venture.


Rio Tinto and its joint venture partner, Hancock Prospecting Pty Limited, will
proceed with the development of the Hope Downs iron ore project at an estimated
capital cost of US$590 million. Rio Tinto and Hancock Prospecting will share the
mine development cost. Stage one will have an annual capacity of 22 million
tonnes, with first production expected in early 2008. At the completion of Stage
two the annual capacity of the mine will be 30 million tonnes.


Rio Tinto will commit an additional US$390 million to cover the capital cost of
the rail, rolling stock and power infrastructure required for this development.


Rio Tinto Iron Ore chief executive Sam Walsh said, 'Rio Tinto's leading role in
the global traded iron ore market, our existing Pilbara infrastructure and our
industry expertise in project construction are fundamental to the rapid
development of this excellent new project.'


'The Hope Downs deposits complement Rio Tinto Iron Ore's existing assets in
Western Australia and will enhance our ability to offer customers a reliable
long term source of high quality ore.'

Mr Walsh said that since Rio Tinto's acquisition of its 50 per cent interest in
the Hope Downs project, the Group has worked closely with Hancock Prospecting to
bring this project to reality.



'This project demonstrates Rio Tinto's continuing commitment to the responsible
development of Western Australia's mineral resources.'


Mr Walsh thanked the Western Australian Government for its assistance with the
overall approval process and said that the outcome reflects its strong support
for the joint venture


Production from the high grade Marra Mamba iron ore deposit will initially come
from the Hope Downs One mining area, which has high grade reserves of 346
million tonnes.


Construction of the mine and the 58 kilometre Lang Hancock Railway, which will
connect to Rio Tinto's existing rail and port infrastructure, will begin
immediately.


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 is a 50:50 unincorporated joint venture between
Rio Tinto and Hancock Prospecting 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.
  • Following completion of a joint venture feasibility study, JORC compliant
    reserves and resources were determined as follows:
      • Hope Downs One deposit contains Marra Mamba iron ore reserves of 346
        million tonnes at 61.6 per cent Fe

Category                                      Tonnage                   Fe Grade

Proved Reserve                                  68 Mt                    61.3 %
Probable Reserve                              278 Mt                     61.7 %
Total Reserve                                 346 Mt                     61.6 %



      • Hope Downs assets (including Hope Downs One resources exclusive of
        reserves) contain iron ore resources of 644 million tonnes at a weighted
        average grade of 61.3 per cent Fe.  These contain a mixture of Brockman,
        Marra Mamba and detrital ore.

Category                                      Tonnage                   Fe Grade

Measured Resource                               9 Mt                     61.3 %
Indicated Resource                            174 Mt                     61.7 %
Inferred Resource                             461 Mt                     61.2 %
Total Resource                                644 Mt                     61.3 %



  • The resource and reserves for Hope Downs One have been prepared in
    accordance with the JORC Code (2004) by suitably qualified competent
    persons, as detailed below:
      • Competent Person Resources: John Phillips - 20 years experience in
        production geology roles, of which 13 years are in Iron Ore. BSc
        (Geology) 1987. Member AusIMM - No. 210415
      • Competent Person Reserves: Peter Sage - 21 years experience in
        operations technical & management roles, of which six years are in Iron
        Ore. BSc Hons. (Mining Geology) 1984. Member AusIMM - No.108846



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Website: www.riotinto.com



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