Iron Ore Price Settlement

Rio Tinto PLC
26 March 2001

                          Iron Ore Price Settlement                           

 
Hamersley Iron has today reached agreement with Japanese customers on prices
for Hamersley fine, lump and Yandi iron ore deliveries for the contract year
commencing 1st April, 2001.
 
The price of fine ore will increase by 4.3% to US cents 28.98 per dry long
ton unit.
The price of lump ore will increase by 3.23% to US cents 38.03 per dry long
ton unit. The price of Yandi ore will increase by 4.3% to US cents 27.24 per
dry long ton unit. (See accompanying note)
 
Delivery tonnage for the year has yet to be finalised.
 
A comparison with 2000 prices, in US cents per dry long ton unit, is as
follows:
 
                  FY00          FY01          % change 
 
Fine ore          27.79          28.98          +4.3%
 
Lump ore          36.84          38.03          +3.23%
 
Lump premium       9.05          9.05
 
Yandi ore         26.12          27.24          +4.3%
 
 
 
 
For further information, please contact:
 
 
LONDON 
 
Media Relations                     Investor Relations 
Lisa Cullimore                      Peter Jarvis
+ 44 (0) 20 7753 2305               + 44 (0) 20 7753 2401
 
                                    Jonathan Murrin
                                    + 44 (0) 20 7753 2326
AUSTRALIA 
 
Media Relations                     Investor Relations 
Ian Head                            Dave Skinner
[phone]                 [phone]
                              
                                    Daphne Morros
                                    [phone]
Website: www.riotinto.com

Notes:- 
 
 
* Iron ore is predominantly traded on the world market under long term
contract. 
 
* Japan, Korea and Taiwan operate on a fiscal year basis commencing 1st April
each year. Europe and China are on a calendar year basis. 
 
* The global reference price settlement is expressed as a percentage increase
or decrease from the previous year. 
 
* The reference price is usually established for fines ore first because this
represents 60% of the traded market. Prices for lump and pellets are then
usually determined as a premium to the fines ore price. 
 
* Once the annual percentage change is negotiated, Japanese iron ore prices
are denominated in US cents per dry long ton unit, reflecting a common base
per unit of iron content. 
 
* In 2000, Hamersley exported 67.1 million wet metric tonnes of ore. 
 
* Comparing prices is a somewhat complex process based on 'iron units' (not
tonnes), often requiring lengthy conversions: 
 
 
      * To determine the US$ price per tonne, the conversion is:-
      US cents per dry long ton unit x Iron Content

      Iron content for Hamersley fine and lump ore is 64% and for HI Yandi 58%
 
      * 'Dry long ton unit' is the imperial form of measurement - and can be
      converted to metric units and adjusted for moisture content of the ore  
      when normally reporting tonnages; 
 
      * To convert quantities from dry long tonnes to dry metric tonnes,      
      multiply dry long tons by 1.016; 
 
      * The moisture content of ores differ