Lihir Gold - Refinancing

RIO TINTO PLC
6 October 1999
                               
The following was announced by Lihir Gold Limited on 6th
October 1999

                   LIHIR GOLD - REFINANCING

Lihir Gold is pleased to announce that it intends to undertake
two transactions in order to facilitate a major refinancing of
the  Company, namely a proposed merger with Niugini Mining and
a placement of shares with institutions.

Details of the proposed merger with Niugini Mining have been
announced jointly by Lihir and Niugini simultaneously with
this release.

Lihir intends to place up to 141,287,000 new shares at a price
to  be  determined  by global bookbuild,  representing  up  to
approximately  15%  of  the  existing  share  capital  of  the
company.   Rio  Tinto has agreed to subscribe  for  sufficient
shares  to maintain its 17.15% interest. The bookbuild process
will  commence at 4-30 pm today and be finalised  by  8-00  am
tomorrow Australian eastern standard time.

The funds raised from the placement will be used to reduce the
amount  and  cost  of Lihir's debt finance, and  will  provide
enhanced  operational flexibility.  It is  expected  that  the
hedgebook  will be comprehensively restructured following  the
refinancing. At 30th September the net market value of Lihir's
hedgebook  was  US$34m, comprising structured  hedges  with  a
value  of US$93m and spot deferreds with a close-out  cost  of
US$59m.

Additionally, Lihir intends to grant a non-transferable option
to  Minerals Resources Lihir, which holds shares in  Lihir  as
trustee  for the Lihirian people, to subscribe for  sufficient
new  ordinary  shares  to maintain its present  8.19%  of  the
Company.   The  grant  of  the  option  will  be  subject   to
shareholder   approval  and  it  is  proposed   that   it   be
exerciseable  at any time up to 6th January 2000  at  a  price
equal  to  the market price at the time of exercise  less  the
same  percentage  discount,  if any,  as  is  applied  to  the
placement.

During the third quarter of 1999 Lihir produced 188,000 ounces
of  gold.  The  Company's estimated production  for  the  year
remains at more than 600,000 ounces.

The shares offered in the Placement have not been and will not
be  registered under the United States Securities Act and  may
not   be   offered  or  sold  in  the  United  States  without
registration  or an applicable exemption from the registration
requirements of the Securities Act.

For further information contact:

Media Relations                    Investor Relations
John Hughes                        Peter Jarvis
+ 44 207 753 2331                  + 44 207 753 2401