Kitimat smelter modernisation

Rio Tinto PLC
30 January 2008


Rio Tinto clears major hurdle for US$2 billion Kitimat smelter modernisation in
British Columbia


30 January 2008


Rio Tinto's US$2 billion project to modernise its Kitimat smelter in British
Columbia, Canada, will be submitted for Board approval following the decision by
the British Columbia Utilities Commission (BCUC) to accept the 2007 Energy
Purchase Agreement (2007 EPA) between Rio Tinto Alcan and BC Hydro.


This is the last of three conditions necessary to be met for the project to go
ahead. The other two key conditions were the resolution of a long-term labour
agreement to ensure stability during the planning, the construction and the
start-up of the Modernisation Project (achieved May 2007), and assurances on
environmental permitting issues (achieved late December 2007)


Jacynthe Cote, Rio Tinto Alcan Primary Metal President, said: 'We are very
pleased with today's BCUC decision to accept the new power agreement between Rio
Tinto Alcan and BC Hydro. Final approval of the project will allow us to stay on
target to deliver first metal by 2012 and reduce greenhouse gas emissions by
half a million tonnes per year.'


The new power agreement provides that the Kitimat smelter's electricity needs
have priority over any other power sales. This will allow Rio Tinto Alcan to
adjust its power sales to BC Hydro depending on the final configuration and
power requirements of the modernised smelter.


Once approved, the modernisation of Rio Tinto Alcan's Kitimat smelter would
increase Rio Tinto's annual global primary aluminium production capacity by more
than three per cent. This will make Kitimat not only one of Rio Tinto's largest
wholly-owned smelters, but also one of the three largest in North America.
Kitimat's aluminium production capacity would increase by 125,000 tonnes using
clean and renewable hydroelectric power from the Rio Tinto Alcan-owned Kemano
power station.


About Rio Tinto


Rio Tinto is a leading international mining group headquartered in the UK,
combining Rio Tinto plc, a London listed company, and Rio Tinto Limited, which
is listed on the Australian Securities Exchange.


Rio Tinto's business is finding, mining, and processing mineral resources. Major
products are aluminium, copper, diamonds, energy (coal and uranium), gold,
industrial minerals (borax, titanium dioxide, salt, talc) and iron ore.
Activities span the world but are strongly represented in Australia and North
America with significant businesses in South America, Asia, Europe and southern
Africa.


Forward-Looking Statements


This announcement includes 'forward-looking statements' within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical facts included in this announcement, including, without
limitation, those regarding Rio Tinto's financial position, business strategy,
plans and objectives of management for future operations (including development
plans and objectives relating to Rio Tinto's products, production forecasts and
reserve and resource positions), are forward-looking statements. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
Rio Tinto, or industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements.


Such forward-looking statements are based on numerous assumptions regarding Rio
Tinto's present and future business strategies and the environment in which Rio
Tinto will operate in the future. Among the important factors that could cause
Rio Tinto's actual results, performance or achievements to differ materially
from those in the forward-looking statements include, among others, levels of
demand and market prices, the ability to produce and transport products
profitably, the impact of foreign currency exchange rates on market prices and
operating costs, operational problems, political uncertainty and economic
conditions in relevant areas of the world, the actions of competitors,
activities by governmental authorities such as changes in taxation or regulation
and such other risk factors identified in Rio Tinto's most recent Annual Report
on Form 20-F filed with the United States Securities and Exchange Commission
(the 'SEC') or Form 6-Ks furnished to the SEC. Forward-looking statements
should, therefore, be construed in light of such risk factors and undue reliance
should not be placed on forward-looking statements. These forward-looking
statements speak only as of the date of this announcement. Rio Tinto expressly
disclaims any obligation or undertaking (except as required by applicable law,
the City Code on Takeovers and Mergers (the 'Takeover Code'), the UK Listing
Rules, the Disclosure and Transparency Rules of the Financial Services Authority
and the Listing Rules of the Australian Securities Exchange) to release publicly
any updates or revisions to any forward-looking statement contained herein to
reflect any change in Rio Tinto's expectations with regard thereto or any change
in events, conditions or circumstances on which any such statement is based.


Nothing in this announcement should be interpreted to mean that future earnings
per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed
its historical published earnings per share.


Subject to the requirements of the Takeover Code, none of Rio Tinto, any of its
officers or any person named in this announcement with their consent or any
person involved in the preparation of this announcement makes any representation
or warranty (either express or implied) or gives any assurance that the implied
values, anticipated results, performance or achievements expressed or implied in
forward-looking statements contained in this announcement will be achieved.


For further information, please contact:

Media Relations, Australia                            Media Relations, London

Amanda Buckley                                        Christina Mills

Office:  [phone]                          Office: [phone]

Mobile: [phone]                           Mobile: [phone]

Ian Head                                              Nick Cobban

Office:  [phone]                          Office:  [phone]

Mobile: [phone]                           Mobile: [phone]

Media Relations, Americas

Nancy Ives

Mobile:  [phone]

Investor Relations, Australia                         Investor Relations, London

Dave Skinner                                          Nigel Jones

Office:  [phone]                          Office:   [phone]

Mobile: [phone]                           Mobile: [phone]

Simon Ellinor                                         David Ovington

Office:  [phone]                          Office:  [phone]

Mobile: [phone]                           Mobile: [phone]

Investor Relations, North America

Jason Combes

Office:  [phone]

Mobile: [phone]


Email:  [e-mail]


Website:  www.riotinto.com

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



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