Palabora Mining Company Ltd

Rio Tinto PLC
14 January 2004

Rio Tinto's 49.2 per cent owned subsidiary, Palabora Mining Company, issued the
following news release in Johannesburg. All dollars are US$ unless otherwise
stated.



Palabora Mining Company Limited



Progress report on the underground mine

Palabora's underground mine achieved a number of significant milestones during
2003. In particular, the safety record was by far the best on record. This is
consistent with improvements around the rest of the business where a total of 17
lost time injuries were recorded compared to 26 in 2002. The Industrial Minerals
Division continued with its excellent safety performance, finishing the year
without any lost time injuries.  Production rates from the underground at year
end were close to three times higher than at the beginning of the year as a
result of the improvements initiated during 2003.



Underground production continued to improve during the final quarter of 2003.
Production increased by 20 per cent third quarter's performance of 18,355 tonnes
of ore per day to an average rate of 21,983 tonnes of ore per day. The expected
full production rate of 30,000 tonnes of ore per day remains the key target.



The following table summarises recent daily underground production:


Final Quarter 2003                         21,983 tonnes per day average
Month December 2003                        22,603 tonnes per day average
Final 10 days to 31 December 2003          24,292 tonnes per day average



Production shortfalls relate primarily to the delayed undercut development and
equipment deficiencies. The development of the undercut has been slowed down in
order to better manage rock stress and improve the longer-term management of the
cave. A further three secondary breaking units and load haul dump units were
commissioned in the last quarter. Three additional secondary breaking units have
been ordered for delivery in April 2004.





Underground project status at 31 December 2003


                   Commissioned         Target              Anticipated Date
Undercut           117,556sq.m.         119,339sqm          Jan 2004
Draw bells         148                  166                 April 2004
Crosscuts          16                   19                  April 2004



A production rate of 30,000 tonnes of ore per day was achieved on several
occasions during the fourth quarter and the Company is confident of achieving
that rate more regularly in the weeks ahead.  Current work to achieve this is
focussed on further improvements to equipment availability, particularly
secondary breaking equipment. As always, the safety of employees and contractors
is being given first priority and will not be compromised to achieve production
targets.



Fourth quarter production statistics

Tonnage of ore treated during the fourth quarter of 2003 was in line with the
underground output.  The open pit ramp scavenging operation was completed in
November. Copper in concentrate production increased with the improved head
grades and recoveries.  Total concentrate smelted comprised run-of-mine
production, smelter secondary and imported concentrate.



Vermiculite production was stable and the reconfigured plant continues to meet
market demand at significantly improved recoveries.  Production during the third
quarter of 2003 was reduced in order to lower supply chain inventory levels.



ZBS (zirconium basic sulphate) production for the fourth quarter was 305 tonnes
and 1,129 tonnes for the year.  Whilst the plant has been proven technically,
the difficult market conditions have meant that the Board are in the process of
considering other options for the ZBS facility, including, sale to a third party
as a going concern and specific product toll manufacturing. Shareholders will be
advised in due course regarding the board's decision.


OPERATIONAL DATA
                                                                                           FULL    FULL
                                                      4Q     1Q     2Q     3Q      4Q      YEAR    YEAR
                                                      2002   2003   2003   2003    2003    2002    2003

Palabora mine
Ore treated ('000 tonnes)                             2,648  2,453  2,726  3,398   2,838   9,933   11,415
Average ore grade: copper (%)                         0.56   0.59   0.60   0.53    0.63    0.63    0.59
Copper concentrates produced ('000 tonnes)            35.7   35.3   38.2   43.5    46.3    167.9   163.3
Average concentrate grade: copper (%)                 31.9   31.5   32.7   32.9    31.3    31.1    32.1
Copper in concentrates ('000 tonnes)                  11.4   11.1   12.5   14.3    14.5    52.2    52.4
Palabora smelter/refinery
New concentrate smelted on site ('000 tonnes)         59.7   57.5   73.7   64.0    80.0    258.6   275.2
New copper anodes produced ('000 tonnes) (1)          18.9   15.8   20.1   19.4    21.3    82.3    76.7
Refined new copper produced ('000 tonnes)             20.4   15.9   19.2   17.4    20.9    81.6    73.4
By-products:
Magnetite concentrate ('000 tonnes)                   40     44     51     53      68      172     215
Refined nickel sulphate (tonnes)                      85     61     27     26      38      314     152
Vermiculite plant
Vermiculite produced ('000 tonnes)                    59.8   51.2   53.9   32.5    35.6    223.5   173.2



(1)     Contained copper in anodes; anode production includes an amount produced
from purchased material.





Trading update and cautionary announcement

Shareholders are advised that the Company's earnings and headline earnings per
share for the year ended 31 December 2003 will be substantially ('substantially'
equating to 30 per cent or more as defined in the Listings Requirements of the
JSE Securities Exchange South Africa ('JSE')) below those of the comparative
period, resulting in a loss situation.  It is anticipated that the unaudited
results for the year ended 31 December 2003 will be published on or about 28
January 2004 at which stage further details will be provided regarding the
Company's results.



The Company's results have not been reviewed and/or reported on by the Company's
auditors and accordingly, shareholders are advised to exercise caution when
dealing in the Company's securities on the JSE until the audited results for the
year ended 31 December 2003 are published.



For further information, please contact:

LONDON                                              AUSTRALIA

Media Relations                                     Media Relations
Lisa Cullimore                                      Ian Head
Office:  [phone]                       Office:  [phone]
Mobile: [phone]                        Mobile: [phone]

Investor Relations                                  Investor Relations
Peter Cunningham                                    Dave Skinner
Office:  [phone]                       Office:  [phone]
Mobile: [phone]                        Mobile: [phone]
Richard Brimelow                                    Daphne Morros
Office:  [phone]                       Office:  [phone]
Mobile: [phone]                        Mobile: [phone]



Website: www.riotinto.com




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