Interim Results - Part 2

RIO TINTO PLC
29 July 1999

Part 2

PROFIT AND LOSS ACCOUNT

 First   First  First   First                   First      First
  Half    Half   Half    Half                    Half       Half     Year
  1999    1998   1999    1998                    1999       1998     1998
   A$m     A$m     £m      £m                    US$m       US$m     US$m

                              Gross turnover
                               (including share
                               of joint ventures
 6,636   6,883  2,638   2,704  and associates)  4,273      4,461    9,221

                              Share of
                               joint ventures'
(1,134) (1,136)  (451)   (446) turnover          (730)      (736)  (1,495)

                              Share of
                               associates'
  (391)   (406)  (156)   (159) turnover          (252)      (263)    (614)

                               Consolidated
 5,111   5,341  2,031   2,099   turnover        3,291      3,462    7,112

(4,077) (4,195)(1,620) (1,648) Operating costs (2,625)    (2,719)  (5,865)

 1,034   1,146    411     451  Operating profit   666        743    1,247

                               Share of
                               operating profit of:

   363     368    144     145   Joint ventures    234        239      463

   120     113     48      44   Associates         77         73       38

                               Profit on ordinary
                                activities before
 1,517   1,627    603     640   interest          977      1,055    1,748
                               Net interest
  (169)   (134)   (67)    (53)  payable          (109)       (87)    (187)

                               Amortisation of
                                discount related to
   (43)    (40)   (17)    (16)  provisions        (28)       (26)     (53)

                               Profit on ordinary
                                activities before
 1,305   1,453    519     571   taxation          840        942    1,508

  (385)   (471)  (153)   (185) Taxation          (248)      (305)    (624)

                               Profit on ordinary
                                activities after
   920     982    366     386   taxation          592        637      884

                               Attributable to
                                outside shareholders
  (129)   (133)   (51)    (52)  (equity)          (83)       (86)    (184)

                               Profit for the
                                financial period
   791     849    315     334   (net earnings)    509        551      700

                               Dividends to
  (351)   (355)  (140)   (139)  shareholders     (226)      (230)    (718)

                               Retained profit/
                                 (loss) for the
   440     494    175     195    period           283        321      (18)


                               Basic and diluted
                                earnings per
 57.7c   60.6c  23.0p   23.9p   ordinary share(a)37.2c      39.4c    50.4c

                               Basic and diluted
                                adjusted earnings
                                per ordinary
 57.7c   60.6c  23.0p   23.9p   share (b)        37.2c      39.4c    79.4c

                               Dividends
25.64c  27.96c 10.39p   9.96p   per share        16.5c      16.5c    52.0c

                               Profit for the
                                financial period
  791     849    315      334  (net earnings)     509        551      700

                               Add: Exceptional
                                asset write-downs
    -       -      -        -  (net of tax)         -          -      403

                               Adjusted
  791     849    315      334   earnings (b)      509        551    1,103

                               Financial ratios

                               - Profit before
                                 interest and
                                 exceptionals/
                                 gross turnover   22.9%    23.6%    23.8%

                               - Interest cover
                                 (times)             9        11       12

                               - Tax rate before
                                  exceptional
                                  items           29.5%    32.4%    34.0%

                               - Adjusted earnings/
                                  average shareholders'
                                  funds (c)       15.4%    15.6%    16.4%

                               - Net debt to total
                                  capital         31.8%     27.3%    31.5%


(a) 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 million, being the average
number of Rio Tinto plc shares outstanding (1,061 million) plus the average
number of Rio Tinto Limited shares outstanding (309 million) excluding
those held by Rio Tinto plc.

(b) Adjusted earnings and adjusted earnings per share exclude exceptional
items and therefore better reflect underlying performance.

(c) The half year figures for this ratio have been annualised.


CASH FLOW STATEMENT

 First   First   First   First                    First     First
  Half    Half    Half    Half                     Half      Half     Year
  1999    1998    1999    1998                     1999      1998     1998
   A$m     A$m      £m      £m                     US$m      US$m     US$m
                               Cash flow from
                                operating
                                activities
 1,562   1,886     622    743   (see below)       1,006     1,223    2,548

                               Dividends from
                                joint ventures
   346     267     138    105   and associates      223       173      523


 1,908   2,153     760    848                     1,229     1,396    3,071

    87     147      35     58  Interest received     56        95      199

  (221)   (238)    (88)   (94) Interest paid       (142)     (154)    (357)

                               Dividends paid to
                                outside
   (96)   (103)    (38)   (41)  shareholders        (62)      (67)    (127)

                               Returns on investment
                                and servicing of
  (230)   (194)    (91)   (77)  finance            (148)     (126)    (285)

  (573)   (380)   (228)  (149) Tax paid            (369)     (246)    (440)

                               Purchase of property,
                                plant and
  (575)   (787)   (228)  (309)  equipment          (370)     (510)  (1,053)

                               Funding of Group
                                share of joint
                                ventures' and
                                associates'
                                capital
   (56)    (83)    (22)   (33)  expenditure         (36)      (54)    (170)

                               Net repayment from
                                joint ventures
   346      51     138     20   and associates      223        33      192

                               Exploration and
                                evaluation
  (96)   (125)    (38)   (49)   expenditure         (62)      (81)    (180)

                               Sale of property,
                                plant and
                                equipment/
   45      19      18      7   investments           29        12       45

                               Capital expenditure
                                and financial
 (336)   (925)   (132)  (364)  investment          (216)     (600)  (1,166)

                               Purchase of subsidiaries,
                                joint ventures
 (438)    (20)   (174)    (8)   and associates     (282)      (13)    (492)

                               Sale of subsidiaries,
                                joint ventures
    -       3       -      1    and associates        -         2        3

                               Acquisitions and
 (438)    (17)   (174)    (7)  disposals           (282)      (11)    (489)

                               Equity dividends
                                paid - Rio Tinto
 (755)   (768)   (300)  (302)   shareholders       (486)     (498)    (728)

                               Cash outflow before
                                management of
                                liquid resources
 (424)   (131)   (165)   (51)  and financing       (272)      (85)     (37)

                               Net cash flow from
                                management of liquid
  396     285     157    112   resources            255       185      346

                               Ordinary shares
    5       6       2      2    issued                3         4        5

                               Ordinary shares
    -    (167)      -    (65)   repurchased           -      (108)    (372)

                               Loans received
 (331)   (108)   (131)   (42)   less repaid        (213)      (70)     173

                               Management of liquid
                                resources and
   70      16      28      7   financing             45        11      152

                               (Decrease)/
 (354)   (115)   (137)   (44)  increase in cash    (227)      (74)     115

                               Cash flow from
                                operating activities

                               Group operating
                                profit from
                                continuing
 1,034   1,146    411     451   activities          666       743    1,247

                               Exceptional asset
     -       -      -       -   write-downs           -        -       244

                               Depreciation and
   592     552    235     217   amortisation        381       358      752

                               Exploration and
                                evaluation charged
    99     117     40      46   against profit       64        76      162

    65      65     26      26  Provisions            42        42      122

                               Utilisation of
   (71)    (66)   (28)    (26)  provisions          (46)      (43)    (118)

                               Change in
   (95)     88    (38)     35   inventories         (61)       57       83

                               Change in accounts
                                receivable and
   (26)    142    (10)     56   prepayments         (17)       92        2

                               Change in accounts
                                payable and
   (25)   (173)   (10)    (68)  accruals            (16)     (112)      43

   (11)     15     (4)      6  Other items           (7)       10       11

                               Cash flow from
                                operating
 1,562   1,886    622     743   activities        1,006     1,223    2,548


Net debt at 30 June 1999 of US$3,509m compares with US$3,258m at 31
December 1998. The increase of US$251m comprises the cash outflow of
US$227m, plus the reduction in liquid resources of US$255m less the
reduction in borrowing of US$213m shown above, less US$18m due to other
items including changes in exchange rates.

BALANCE SHEET

 First   First  First   First                     First     First
  Half    Half   Half    Half                      Half      Half     Year
  1999    1998   1999    1998                      1999      1998     1998
            As             As                                  As       As
      restated       restated                            restated restated
   A$m     A$m     £m      £m                      US$m      US$m     US$m

                              Intangible fixed
   355       -    149       -  assets - goodwill    235         -      287

                              Tangible fixed
                               assets

                              Property, plant
14,353  14,945  6,027   5,545  and equipment      9,499     9,254    9,274

                              Exploration and
                               evaluation
   210     178     88      66  properties           139       110      114

                              Investments

                              Share of gross
                               assets of joint
 3,808   3,676  1,599   1,364  ventures           2,520     2,276    2,163

                              Share of gross
                               liabilities
                               of joint
(1,612) (1,693)  (677)   (628) ventures          (1,067)   (1,048)    (953)

 2,196   1,983    922     736                     1,453     1,228    1,210

                              Investments in
 1,126   1,922    473     713  associates/other     745     1,190      963

 3,322   3,905  1,395   1,449 Total investments   2,198     2,418    2,173

                              Total fixed
18,240  19,028  7,659   7,060  assets            12,071    11,782   11,848

                              Current assets

 2,081   2,117    874     786 Inventories         1,377     1,311    1,293

                              Accounts receivable
 2,884   3,048  1,211   1,131  and prepayments    1,909     1,887    1,910

   319     636    134     236 Investments           211       394      413

                              Cash at bank
 1,009   1,529    424     567  and in hand          668       947      903

 6,293   7,330  2,643   2,720                     4,165     4,539    4,519

                              Creditors due within
                              one year

                              Short term
(4,234) (4,709)(1,778) (1,747) borrowings        (2,802)   (2,916)  (2,896)

                              Accounts payable
(2,180) (2,384)  (916)   (884) and accruals      (1,443)   (1,476)  (1,888)

(6,414) (7,093)(2,694) (2,631)                   (4,245)   (4,392)  (4,784)

                              Net current
                              (liabilities)/
  (121)    237    (51)     89 assets                 (80)      147    (265)


                              Total assets less
                               current
18,119  19,265  7,608   7,149  liabilities       11,991    11,929   11,583

                              Creditors due after
                               one year

                              Provisions for
                               liabilities and
(4,374) (4,427)(1,837) (1,643) charges           (2,895)   (2,741)  (2,813)

                              Medium and long
(2,396) (2,206)(1,006)   (818) term borrowings   (1,586)   (1,366)  (1,678)

                              Outside
                               shareholders'
(1,010) (1,123)  (423)   (418) interests (equity)  (667)     (696)    (673)

10,339  11,509  4,342   4,270                     6,843     7,126    6,419

                              Capital and reserves

                              Share capital
   252     320    106     119 - Rio Tinto plc       167       198      195

                              - Rio Tinto Limited
                                (excluding Rio
                                Tinto plc
 1,364     636    573     236   interest)           903       394      837

                              Share premium
 2,522   3,610  1,059   1,339   account           1,669     2,235    1,759

   166     147     70      55  Other reserves       110        91       92

                              Profit and loss
 6,035   6,796  2,534   2,521   account           3,994     4,208    3,536

                              Shareholders' funds
                               (includes non-
10,339  11,509  4,342   4,270   equity)           6,843     7,126    6,419


(a) In accordance with Financial Reporting Standard 4, all commercial paper
is classified as short term borrowings though US$1,299 million is backed by
medium term facilities.  Under US and Australian GAAP this amount would be
classified as medium term borrowings.

(b) At 30 June 1999, Rio Tinto plc had 1,061 million ordinary shares in
issue and Rio Tinto Limited had 309 million shares in issue, excluding
those held by Rio Tinto plc.

(c) Shareholders' funds at 31 December 1998 and 30 June 1998 have been
reduced by US$293m as a result of the implementation of FRS12.

(d) The reduction in goodwill in the six months to 30 June 1999 includes a
reallocation of US$33m to Property, plant and equipment.


RECONCILIATION WITH AUSTRALIAN GAAP

 First   First  First  First                      First    First
  Half    Half   Half   Half                       Half     Half     Year
  1999    1998   1999   1998                       1999     1998     1998
   A$m     A$m     £m     £m                       US$m     US$m     US$m

                              Adjusted earnings
   791     849    315    334   under UK GAAP        509      551    1,103

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

                              Net earnings
   791     849    315    334   under UK GAAP        509      551      700

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

                               Abnormal item:
                               increase in
  (455)      -   (181)     -   provsions           (293)       -        -

                               Goodwill
  (129)   (130)   (51)   (51)   amortisation        (83)     (84)    (166)

     2       2      1      1   Other                  1        1        3

                              Net earnings under
   209     721     84    284   Australian GAAP      134      468      537

                              Earnings per
                               share under
  15.3c  51.5c   6.1p  20.3p   Australian GAAP     9.8c    33.4c    38.6c

                              Australian GAAP
                               earnings before
                               exceptional asset
                               write-downs and
                               abnormal increase
                               in provisions (see
    664    721    265    284   below)               427      468      940

                              Shareholders' funds
 10,339 11,509  4,342  4,270   under UK GAAP      6,843    7,126    6,419

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

  2,492  2,922  1,046  1,084  Goodwill            1,649    1,809    1,756

    (76)   (82)   (32)   (31) Taxation              (50)     (51)     (48)

                              Reversal of
                               additional provisions
      -    473      -    176   under FRS 12           -      293      293

    (12)   (13)    (5)    (5) Other                  (8)      (8)      (9)

                              Shareholders' funds
                               under Australian
 12,743 14,809  5,351  5,494   GAAP               8,434    9,169    8,411

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 item: increase in provisions
The introduction of FRS 12 has led to changes in the Group's accounting
policy under UK GAAP.  The new accounting policy is acceptable under
Australian GAAP.  Therefore, to minimise differences between 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
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.

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 FRS 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.

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.


RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

 First  First   First   First                     First     First
  Half   Half    Half    Half                      Half      Half     Year
  1999   1998    1999    1998                      1999      1998     1998
           As              As                                  As       As
     restated        restated                            restated restated
   A$m    A$m      £m      £m                      US$m      US$m     US$m

                              Profit for the
   791    849     315     334  period               509       551     700

  (351)  (355)   (140)   (139)Dividends            (226)     (230)   (718)

   440    494     175     195                       283       321     (18)

                              Currency
                               translation
  (541)   401     318    (128) adjustment           156      (110)   (212)

                              Repurchased share
                               capital less
   (23)  (199)     (9)    (79) issued               (15)     (129)   (367)

                              Goodwill arising
                               on 1997
     -      -       -       - acquisitions            -         -     (28)

                              Net increase/(decrease)
                               in shareholders'
  (124)   696     484     (12) funds                424        82    (625)

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

                              Closing shareholders'
10,339 11,509   4,342   4,270  funds              6,843     7,126   6,419


PRIMA FACIE TAX RECONCILIATION

 First   First  First   First                     First     First
  Half    Half   Half    Half                      Half      Half    Year
  1999    1998   1999    1998                      1999      1998    1998
   A$m     A$m     £m      £m                      US$m      US$m    US$m

                               Profit on ordinary
                                activities before
 1,305   1,453    519     571   taxation            840       942   1,508

                               Actual taxation
                                charge for
  (385)   (471)  (153)   (185)  the period         (248)     (305)   (624)

                               Prima facie tax
                                payable at UK
                                rate of 30.25%
   395     451    157     177   (1998 - 31%)        254       292     467

                               Higher rate of
                                taxation on
    36      34     14      13   Australian earnings  23        22      43

                               Lower rate of tax
                                relief on exceptional
     -       -      -       -   asset write-downs     -         -      96

                               Favourable/(adverse)
    46      14     18       5   variation            29         9     (18)

                               Analysed as follows:

                               Other tax rates
                                applicable outside
                                the UK and
   (56)    (65)   (22)    (25)  Australia           (36)      (42)    (98)

                               Research, development
                                and other investment
     5       6      2       2   allowances            3         4      14

                               Resource depletion
                                and other
                                depreciation
    47      31     19      12   allowances           30        20      46

                               Advance Corporation
     5       9      2       4   Tax - net recovery    3         6      30

                               Impact of tax rate
                                changes on opening
    39       -     15       -  deferred tax balances 25         -       -

     6      33      2      12  Other                  4        21     (10)

                               Total favourable/
                                (adverse) variation
    46      14     18       5   in taxation charge   29         9     (18)


EXPLORATION AND EVALUATION PROPERTIES

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

 1,270  1,071     468     424 At 1 January          779       696     696

                              Adjustment on
                               currency
   (68)    25      39     (17) translation           18       (17)    (22)

                              Expenditure in
    96    125      38      49  period                62        81     180

                              Charged against
                               profit for
   (43)   (68)    (18)    (27) the period           (28)      (44)    (83)

                              Disposals, transfers
                               and other
    14    (63)      6     (25) movements              9       (41)      8

 1,269  1,090     533     404 At end of period      840       675     779

                              Provision/
                              amortisation

(1,084)  (872)   (399)   (345)At 1 January         (665)     (568)   (568)

                              Adjustment on
                               currency
    69    (33)    (29)     10  translation           (8)        8       7

                              Charged against
                               profit for the
   (56)   (49)    (22)    (19) period               (36)      (32)    (79)

                              Disposals, transfers
                               and other
    12     42       5      16  movements              8        27     (25)

(1,059)  (912)   (445)   (338) At end of period    (701)     (565)   (665)

                               Net balance sheet
   210    178      88      66  amount               139       110     114


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