Interim Results - Part 1

RIO TINTO PLC
29 July 1999

Part 1

     Strong Performance Demonstrates Continuing Efficiency
                         Improvements

Rio  Tinto's  1999  first half net earnings  of  $509  million
demonstrate further benefits from stronger and more  efficient
operational  performance.   Rio Tinto  continued  to  increase
volumes,  achieve efficiencies and cost savings,  and  sustain
margins, through this period of low commodity prices.

Volume    growth,    including   benefits   from    successful
commissioning  of  major projects, added $40  million  to  net
earnings.

Further  efficiency  gains yielded cash cost  savings  with  a
positive impact on net earnings of $102 million.

Lower  prices  reduced net earnings by $160 million  but  were
partly offset by exchange rate changes.

Cash  flow  from operating activities together with  dividends
from joint ventures and associates totalled $1.2 billion.


'Rio  Tinto's  persistent emphasis on efficient operations  is
serving  us well,' said Robert Wilson, Chairman of Rio  Tinto.
'The  1999 first half earnings show that efficiency gains  and
cost savings during the past two years have helped to maintain
margins  despite  the  very  steep  price  declines.   We  are
therefore  in  great  shape to benefit  from  the  prospective
improvement in market conditions.'


Half Year to 30 June
US dollars          1999            1998           Change

Group sales revenue $4,273m         $4,461m        -4%
Profit before tax   $840m           $942m          -11%
Net earnings        $509m           $551m          -8%
Earnings per share  37.2 cents      39.4 cents     -6%

All $ are US$, unless otherwise stated.

Interim  dividends, equivalent to 16.5 US cents  (10.39  pence
and  25.64  Australian cents) per share, have  been  declared.
This compares with the 1998 interim dividends of 16.5 US cents
(9.96 pence and 27.96 Australian cents) per share.


FIRST HALF 1999 REVIEW

In the first half of 1999, recent projects reached or exceeded
their  design capacities earlier than expected. Production  of
iron ore at the new Yandicoogina mine in Western Australia  is
expected  to reach ten million tonnes in 1999. The  expansions
at  the  Escondida copper mine in Chile and at QIT's  titanium
dioxide  feedstock  plant  in Canada  are  running  at  design
capacity.  These,  together with generally higher  volumes  in
most product groups, added $40 million to first half earnings.

'Our  search for capital and operating efficiencies throughout
the  Group continues unabated and is an integral part  of  Rio
Tinto   operations,'  said  Leon  Davis,  Rio  Tinto's   Chief
Executive.   'In  the  first  half  of  the  year,   operating
efficiencies contributed another $102 million to earnings.  We
have  further significant developments in hand, including  the
Palabora  underground project and the fifth  mining  plant  at
Richards Bay Minerals in South Africa.  Work continues at  the
Diavik  diamond  project  in Canada, as  do  negotiations  and
studies  preparatory to a decision on the feasibility  of  the
Comalco Alumina Project.

'As for the future, we have major iron ore reserves in Western
Australia   with   low   cost   expansion   opportunities   at
Yandicoogina.   Both  Escondida in  Chile  and  the  Grasberg,
Indonesia,   copper  mines,  the  Weipa  bauxite  deposit   in
Queensland  and our coal operations in the US,  Australia  and
Indonesia, offer further expansion possibilities.

'We will continue to get greater operational efficiencies from
our  existing  assets.  We will apply those same standards  to
our  new  projects,  taking  every  potential  opportunity  to
enhance shareholder value.'


OUTLOOK

Looking ahead, Mr Wilson was encouraged to see some indication
of a better pricing environment for certain commodities.

'Economic  growth  in the US continues and  although  much  of
Europe  remains weak, the outlook is rather more  positive  in
Asia.  Taken as a whole, the global picture has improved since
the  start  of the year. In due course, this improvement  will
flow not only into growth in demand, but also into prices  for
commodities, especially as there has been some curtailment  of
industry capacity.

'Rio  Tinto has held its course in recent years and  continued
to  seek opportunities to strengthen the business.  Since  the
current  downturn  began two years ago, we have  continued  to
invest   in   high   quality  new  projects  and   expansions;
investments  which  now total more than $3  billion.   We  are
coming  out of this downturn with an enhanced asset portfolio,
increased production capability and a substantially lower cost
structure.   That all contributes to a belief that  Rio  Tinto
can face the future with considerable confidence.'

FIRST HALF 1999 FINANCIAL RESULTS

Net earnings

Net earnings, at $509 million, held up well in a period of low
commodity  prices.  The reduction in earnings  from  the  $551
million  reported in the first half of 1998 was  contained  to
$42 million.

Of the $160 million reduction in earnings due to lower selling
prices, $118 million was due to lower quoted commodity prices,
with the average copper price 17 per cent lower than the first
half of 1998, aluminium down 11 per cent and gold down six per
cent.   Lower  prices for commodities that are  not  'quoted',
particularly  iron  ore  and coal,  reduced  first  half  1999
earnings by $42 million.

Changes  in  exchange  rates added  $21  million  to  earnings
compared with the first half of 1998.

Higher  volumes contributed $40 million to earnings.   Volumes
were higher at Kennecott Energy as a result of the acquisition
of  the Jacobs Ranch coal mine last year and expansions at the
Antelope  and  Cordero  Rojo operations.   Kennecott  Minerals
benefited  from  increased gold production at Cortez.  Against
this,  titanium dioxide and diamond sales were both  lower  in
the period.

Further  savings in cash costs added $102 million to earnings,
with  continuing efficiency improvements in almost all of  the
Group's business units.  These cost savings were partly offset
by  inflation of $33 million and increased non-cash  costs  of
$19  million.   The latter is due largely to  depreciation  on
acquisitions and new projects.

The  tax  charge of 29.5 per cent for the first half  of  1999
benefited from certain one-off credits that will not recur  in
the  second half year.  Without these, the tax rate would have
been  around  35  per cent.  The credits included  changes  in
South African tax rates, which reduced the first half tax rate
by 3 percentage points; after outside shareholders' interests,
the  amount  that  flowed  through to  net  earnings  was  $15
million.  The tax rate for the first half of 1998 was 32.4 per
cent and for the full year 1998, it was 34 per cent.

Cash Flow

Cash  flow from operations together with dividends from  joint
ventures  and  associates remained strong  at  $1,229  million
although  below  the $1,396 million for the same  period  last
year.

Acquisitions  cost  $282  million.   This  related  mainly  to
Australian    coal   mines,   including   Kestrel    (formerly
Gordonstone), and a further 2 per cent of the share capital of
Comalco Limited.

Purchases  of  property, plant and equipment reduced  to  $370
million from $510 million in the same period last year.  There
were  also  net  repayments of funding of joint  ventures  and
associates of  $187 million.

In  the  period,  cash  flow was reduced  by  a  $123  million
increase in tax payments and a $94 million increase in working
capital.
Overall, there was a cash outflow before management of  liquid
resources  and  financing of $272 million for the  six  months
(1998 first half: $85 million outflow).

Balance sheet

Shareholders' funds increased by $424 million in the half year
to  $6,843  million  at 30 June 1999.  The  increase  includes
retained  earnings of $283 million and a currency  translation
adjustment of $156 million, which was due largely to a six per
cent  appreciation of the Australian dollar since 31  December
1998.

Net  debt  increased by $251 million over the six  months,  to
$3,509  million.  Net debt to total capital at 31.8  per  cent
compares with 31.5 per cent at the start of the year.

Prior year adjustment on implementation of FRS 12

Shareholders' funds at 31 December 1998 have been restated  to
$6,419 million as a result of a prior year adjustment of  $293
million.   This adjustment results from the implementation  of
UK  Financial  Reporting Standard 12 (FRS 12) which  sets  out
accounting  principles for provisions, contingent  liabilities
and contingent assets.  It requires 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 future closure costs over the period  from  the
year  of  introduction  of  the  policy  to  the  end  of  the
productive life of each operation.

Under  FRS 12, the provision in the accounts reflects the  net
present   value  of  the  estimated  cost  of  restoring   the
environmental disturbance that has occurred up to the  balance
sheet  date.   The  costs  so  provided  are  capitalised  and
amortised  against profits in future years.   The  prior  year
adjustment  is  based  on the amounts  that  would  have  been
charged  against profits of previous years if FRS 12 had  been
applied consistently in the past.

Annual  charges  for  future environmental rehabilitation  and
closure  costs  under  FRS  12  are  not  expected  to  differ
significantly,  in  total, from those under  the  old  policy.
However, under FRS 12 the largest part of the annual charge is
regarded as a finance cost and appears in the Profit and  Loss
account line 'Amortisation of discount related to provisions'.

Dividends

Interim dividends equivalent to 16.5 US cents per share (1998:
16.5  US  cents) have been declared by Rio Tinto plc  and  Rio
Tinto Limited.

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 an interim dividend of
10.39 pence per ordinary share (1998: 9.96 pence).

Rio  Tinto  Limited  shareholders  will  be  paid  an  interim
dividend  of 25.64 Australian cents per ordinary share  (1998:
27.96  cents).  This will be fully 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 31 August  1999  to
shareholders registered at close of business on 13 August, and
to  Rio Tinto plc bearer shareholders against coupon 81 on  or
after  31 August 1999.  The ex-dividend date will be 9  August
1999.   Dividends to Rio Tinto ADR holders will be paid  on  1
September 1999.

Redemption of Preference Shares

Following  shareholder  approval at the  1999  annual  general
meeting, Rio Tinto plc's preference share capital was redeemed
on 30 June 1999.

Share Buybacks

During  the six months to 30 June 1999, no ordinary shares  in
either  Rio Tinto plc or Rio Tinto Limited were purchased  for
cancellation by either company.


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

IRON ORE GROUP  1999 first half earnings $122 million, down 27%
                      Production at 24 million tonnes, down 10%

Rio  Tinto's Iron Ore group accounted for 11 per cent of Group
sales  revenue.  Shipments from the Yandicoogina  mine,  which
commenced in January, contributed to sales growth in the first
half,  bringing  total  shipments to 26.4  million  tonnes,  a
slight  increase  over the same period of 1998.   Unseasonably
wet weather affected Hamersley's first quarter production, but
it picked up in the second quarter.  The strong second quarter
shipments and continued progress on cash cost reduction helped
to  offset the 11 per cent reduction in ore prices, which took
effect from 1 April.

Operating  all five wholly owned Hamersley mines as  one  mine
has  resulted in improved efficiency, including a 40 per  cent
reduction in the amount of equipment used since 1996.

In  June,  Rio  Tinto  announced that it  was  in  preliminary
discussions  with The Broken Hill Proprietary Company  Limited
(BHP)  regarding a possible joint venture of their  respective
iron  ore  operations; no agreement has yet been  reached  but
discussions are continuing.



INDUSTRIAL MINERALS GROUP

                1999 first half earnings $189 million, down 5%
                Borates production at 288,000 tonnes, down 2%
Titanium dioxide feedstock production at 730,000 tonnes, down 2%

Rio  Tinto's Industrial Minerals businesses accounted  for  24
per cent of Group sales revenue.

Borax earnings of $60 million were three per cent down on  the
previous  year.  Market weakness in Europe and  South  America
outweighed continued strength in North America and recovery in
Asia.   Higher stripping costs at Boron in the US were largely
offset by cost reductions elsewhere in the business.

Rio Tinto Iron & Titanium (RIT) earnings, at $80 million, were
eight  per cent lower.  Production of titanium dioxide  (TiO2)
feedstocks  was down slightly, reflecting lower sulphate  slag
demand.  There was a general softening in all RIT markets,  in
particular  for  iron, steel and zircon  co-products,  all  of
which  experienced  difficult  trading  conditions.   However,
earnings  did benefit from an improved contribution from  UGS,
strong  metal powder demand and the recent reduction in  South
African  tax rates.  In June, a fire following an iron  runout
damaged  two of QIT's nine smelting furnaces.  There  were  no
serious   injuries.    Repairs  will  take   several   months.
Meanwhile,  QIT  has  the capability to maintain  supplies  of
feedstocks.

The  Argyle  diamond mine benefited from the overall  improved
market  sentiment for diamonds although output in  the  period
was  lower,  reflecting ore grade and pit scheduling.  Further
development  of  the pit has allowed reserves  to  be  revised
upward  to  71.6 million tonnes as of 31 March 1999.   Overall
earnings were essentially unchanged.

Earnings  at  both Luzenac (talc) and Dampier Salt  (salt  and
gypsum) were at similar levels to the first half of 1998.

COPPER GROUP    1999 first half earnings $115 million, down 12%
               Mined copper production at 434,300 tonnes, up 6%
           Refined copper production at 184,200 tonnes, up 24 %

Rio  Tinto's Copper group accounted for 19 per cent  of  Group
sales  revenue, of which 12 per cent was from copper  and  the
remainder mostly from gold.  A 17 per cent drop in the average
copper price from 78 cents per pound in the first half of 1998
to 65 cents in the first half of 1999, and a six per cent fall
in the gold price, adversely affected earnings.

Refinery production at Kennecott Utah Copper was higher in the
first  half  of  1999 compared with the same period  in  1998.
Increased  milling  rates  resulting from  improved  operating
efficiencies   combined  with  continued  progress   on   cost
reductions to partially offset the effect of lower copper  and
gold prices.

As previously reported, Rio Tinto's share of copper production
from  the  Grasberg expansion in Indonesia was  lower  in  the
first  half  of  1999 compared with the same  period  in  1998
because  a lower proportion of production was attributable  to
the  Joint  Venture.  Rio Tinto's direct share  of  production
from  the expansion was 45,000 tonnes of copper compared  with
56,000  tonnes  in the first half of 1998.  Attributable  gold
production,  however,  was some 26 per cent  higher  than  the
previous year.

At  Escondida  in Chile, milling rates reached  record  levels
with  the  successful commissioning of the Phase 3.5 expansion
earlier   in  the  year.   Rio  Tinto's  share  of  production
increased  by  14 per cent to 152,000 tonnes of  copper.   The
successful start up of the new oxide plant contributed  22,600
tonnes of copper in leachate to this total.

Rio  Tinto's share of production from Palabora declined by  20
per cent, reflecting a fall in grades mitigated by an increase
in  Rio Tinto's equity interest since June 1998.  The fall  in
grade  arises from the treatment of low-grade stockpiles along
with open pit ore.  The impact of lower volumes and prices  at
Palabora was offset by a one-off benefit from the reduction in
the  South  African  tax rate and improved  cost  performance.
Copper  production at Neves Corvo declined 12 per  cent,  also
largely because of lower grades.

COMALCO          1999 first half earnings $52 million, down 27%
               Bauxite production at 4.2 million tonnes, up 44%
                       Aluminium metal at 237,700 tonnes up 11%

Comalco,   Rio   Tinto's   Australian  aluminium   subsidiary,
generated 14 per cent of Group sales revenue in the first half
of  1999.   Rio  Tinto increased its interest in Comalco  from
70.4 per cent to 72.4 per cent in the first half of the year.

There   was  continued  uncertainty  in  Comalco's  key  Asian
markets.   In addition, aluminium prices declined  by  11  per
cent  from  an average of 64 US cents per pound in  the  first
half  of 1998 to 57 US cents per pound during the same  period
this year.

Operating performance improved, production increased and costs
reduced  at  all three smelters. Rio Tinto's share of  primary
aluminium output increased by 11 per cent in the first half of
1999  compared with the same period last year.  All cells  are
now  on line at Boyne Island Line 3 following negotiations for
additional  electricity.  The performance enhancement  process
is continuing.

ENERGY GROUP       1999 first half earnings $111 million, up 8%
                      Coal production 67 million tonnes, up 41%
                 Uranium oxide production 1,125 tonnes, down 4%

Rio  Tinto's Energy group accounted for 21 per cent  of  Group
sales revenue.

In  the US, the contribution from the Jacobs Ranch mine, a  27
per  cent  production increase at Cordero Rojo and an  overall
increase  in demand boosted Kennecott Energy's coal production
by 56 per cent to 52 million tonnes.

In  Australia,  Rio  Tinto's share of coal production  in  the
first half was 12 per cent higher than the first half of 1998.
In  Queensland, Pacific Coal announced the name change of  the
Gordonstone  coal  mine  to Kestrel  Coal.   Commissioning  at
Kestrel  started  in May and the first shipment  was  made  in
July.   Cost reductions and efficiency gains continued at  the
Tarong and Blair Athol mines.

Rio  Tinto  increased its beneficial interest in  Blair  Athol
from  57  per cent to 71 per cent, and increased its ownership
in  the  Clermont  coal deposit to 55 per  cent  by  acquiring
ARCO's  19.5  per  cent stake.  In New  South  Wales,  Coal  &
Allied, Rio Tinto and Mitsubishi plan to merge their New South
Wales coal interests, subject to necessary approvals.

Shipments  from  the  Kaltim  Prima  coal  mine  in  Indonesia
suffered  because  of  unusually high rainfall  combined  with
under  performance  of  some  mobile  equipment.   The  issues
related  to the mobile equipment have been addressed  and  the
shortfall  is expected to be corrected during the second  half
of 1999.

Uranium  oxide  production  at the  Rossing  mine  in  Namibia
decreased slightly in the first half. Continued low prices  in
the first half of 1999 kept Rossing production below capacity.


GOLD & OTHER MINERALS GROUP
                 1999 first half earnings $50 million, up 257%
                     Gold production at 727,000 ounces, up 16%

Rio  Tinto's Gold & Other Minerals group accounted for 11  per
cent  of  Group  sales  revenue. Gold  &  Other  Minerals  now
includes Kennecott Minerals Company, excluding Barneys Canyon,
which  remains in the Copper group. Despite lower gold prices,
earnings  from the US gold operations more than  doubled  with
significantly higher production from Cortez, up 117,000 ounces
to  261,000  ounces.   The  first half  of  1999  saw  healthy
production performance at most of the operations; however, the
gold  price continued to fall during the first half, averaging
$280 per ounce, down six per cent from the first half of 1998.

At  the Morro do Ouro mine in Brazil, gold output decreased by
10  per  cent compared with the first half of 1998 because  of
ore  hardness and milling difficulties.  Rio Tinto's share  of
production was 43,000 ounces.

Unusually  wet weather affected gold production at  Kelian  in
Indonesia,  which was down five per cent from the same  period
in 1998.  Rio Tinto's share of production was 184,000 ounces.

Production  at  the Lihir gold mine in Papua  New  Guinea  was
lower than expected.  Repairs to the acid brick lining of  the
autoclaves  resulted  in  below capacity  performance  in  the
pressure   oxidation  circuit  during  the  post-commissioning
phase.   Rio  Tinto's  share  of gold  production  was  46,000
ounces, a slight increase over the same period in 1998.

At  Fortaleza  in  Brazil, nickel in matte production  reached
3,900 tonnes in the first half of 1999.

NEW PROJECT DEVELOPMENT UPDATE

Feasibility study work continued on the Diavik diamond project
in   Canada.    The  project  is  undergoing  a  comprehensive
evaluation  under the Canadian Environmental  Assessment  Act.
The Government completed a review during the first quarter  of
1999,  culminating in the submission of a comprehensive  study
report  to  the  Federal  Minister of the  Environment.   This
report was made available for public review in June.

In  South  Africa,  projects include the  $161  million  fifth
mining  plant  at Richards Bay Minerals and the  $437  million
development  of  the Palabora underground  mine.   Underground
production  at Palabora is scheduled to begin in  2003,  which
coincides with the closure of the open pit.

Work on the Comalco Alumina Project focused on engineering and
process optimisation. Further development of energy and fiscal
options  relating to the two short-listed sites of  Gladstone,
in  Queensland  and  Bintulu in Sarawak,  Malaysia  continued.
Timing is still difficult to predict, and remains dependent on
achieving   a   satisfactory  outcome  to   negotiations   and
engineering studies.  A decision on feasibility of the project
will  be  made once the various negotiations and studies  have
been  completed.  The necessary Board approvals would then  be
sought and financing arranged.



Year 2000 Issues

Rio Tinto's Year 2000 compliance costs to-date are $42 million
of   which   $20   million  is  capital  expenditure.    Total
expenditure  is  expected  to  be approximately  $55  million.
Future  costs  of  $13  million include  retaining  Year  2000
resources   to  monitor  changes  or  developments,  executing
contingency  plans and a modest amount for unforeseen  issues,
which may arise either before or after the end of 1999.

No  significant IT projects have been deferred as a result  of
Year  2000 rectification activity.  Under Rio Tinto's  current
programme, most business units have now substantially achieved
compliance  of  those  items  which  are  under  their  direct
control.    No  significant  internal  systems  or   equipment
problems have been identified that cannot be rectified  before
2000.   The  Group's  Year 2000 programme  is  now  very  well
advanced  and  at most business units substantially  complete.
However, Year 2000 teams and resources will be retained  until
the early part of 2000 to continually monitor this issue.

Group company compliance programmes include liaison with third
party  suppliers,  customers and business partners  to  pursue
Year  2000  compliance through the business chain.  While  Rio
Tinto  cannot  take responsibility for the  actions  of  third
party  suppliers, customers or business partners, it continues
to encourage and monitor the development and implementation of
their  Year 2000 programmes.  Group companies are now refining
contingency  plans,  including  measures  to  mitigate   risks
associated with non-compliance outside the Rio Tinto Group.

Exploration

Total  pre-tax exploration expenditure charged to  the  profit
and  loss  account for the first half of 1999 was $64  million
compared with $76 million in the first half of 1998.

Despite the present subdued business environment, the Group is
committed  to  exploration,  as a fundamental  aspect  to  its
future  growth.   In   major  developments,  drilling  at  the
Simandou  iron ore prospect in Guinea finished for the  season
with  encouraging results.  Drilling continued on the Pukaqaqa
copper  prospect  in Peru and the Khanong copper  prospect  at
Sepon  in  Laos.  Base  metals  drilling  around  Century   in
Queensland, Australia continued.

The   objective   of  exploration  to  provide   world   class
opportunities to the Group in a cost-effective manner has been
strengthened   through   increased   emphasis   on    rigorous
prioritisation   of  the  world-wide  portfolio,   operational
efficiencies and commercial focus.

For further information, please contact:

Media Relations                    Investor Relations

Alexis Fernandez                   Peter Jarvis
+ 44 207 753 2305                  + 44 207 753 2401

website: www.riotinto.com


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