Iron ore price settlement

Rio Tinto PLC
22 December 2006

Iron ore price settlement



Hamersley Iron has today reached agreement with China's Baosteel on the price
for Hamersley iron ore deliveries for the contract year commencing 1 April 2007.
Under this agreement, the price of Hamersley lump and fine ores will increase by
9.5 per cent.



The new prices will be:-



            Hamersley Fines           US $ 0.8042 per dry metric tonne unit

            Hamersley Lump            US $ 1.0264 per dry metric tonne unit



Sam Walsh, Chief Executive of Rio Tinto's Iron Ore Group, said, 'As a major
supplier to China for over thirty years, Hamersley Iron is pleased to reach this
agreement today with Baosteel, China's largest steelmaker. The agreement
reflects the continuing strong demand in the market for Hamersley's products.'




For further information, please contact:

LONDON                                               AUSTRALIA

Media Relations                                      Media Relations

Nick Cobban                                          Ian Head

Office:  [phone]                        Office:  [phone]

Mobile: [phone]                         Mobile: [phone]
Investor Relations                                   Investor Relations

Nigel Jones                                          Dave Skinner

Office: [phone]                         Office:  [phone]

Mobile: [phone]                         Mobile: [phone]



David Ovington                                       Susie Creswell

Office:  [phone]                        Office:  [phone]

Mobile: [phone]                         Mobile: [phone]



Website: www.riotinto.com

High resolution photographs available at: www.newscast.co.uk




                      This information is provided by RNS
            The company news service from the London Stock Exchange