Palabora Mining Interim Rslts

RIO TINTO PLC
16 July 1999


Palabora Mining Company Limited and its Subsidiaries
Interim report for the six months ended 30 June 1999

UNAUDITED GROUP RESULTS

                         Six Months               Year
Income statement         30.6.99     30.6.98      1998
                         R000        R000         R000

Revenue                  685,823     852,260      1,803,914
Operating costs /
depreciation             471,914     682,342      1,357,735
Operating profit         213,909     169,918      446,179
Dividends received                   0                 -
Interest received        5,212       3,307        12,584
Foreign exchange
gains / (losses)         5,128       5,357        26,758
Interest payable         (1,121)     (1,750)      (2,119)
Profit before taxation   223,128     176,832      483,402
Deduct :
Taxation and lease
Consideration            10,192      81,488       208,952
Profit after taxation    212,936     95,344       274,450

                         Six Months               Year
Balance Sheet            30.6.99     30.6.98      1998
                         R000        R000         R000

Employment of capital
Fixed assets             2,013,462   1,572,211    1,827,006
Deferred expenditure     54,322      72,815       63,112
Investment - (Unlisted)  33,829      28,876       33,829
Current assets           778,460     690,951      735,746
Current liabilities      (270,622)   (215,914)    (243,232)
Total                    2,609,451   2,148,939    2 416,461

Capital employed
Ordinary shareholders'
funds                    1 174 738   851 234      962 544
Provision for 
restoration               75 780      67 800       72 180
Borrowings               607 732     578 675      588 300
Provision for Post
Retirement Medical
Benefits                 116 220     96 254       117 312
Deferred taxation        609 280     554 976      650 424
Secondary taxation       25 701      0            25 701
                         2 609 451   2 148 939    2 416 461


Selected Statistics

                         Six Months               Year
                         30.6.99     30.6.98      1998
Production and
sales
Materials mined
(millions of tons)       13,9        15,2         30,3
Copper in concentrate
(thousands of tons)      47,5        68,9         148,4
Cathode produced
(thousands of tons)      45,9        47,3         104,1
Cathode sold
(thousands of tons)      46,2        51,7         109,3
Contained copper sold
(thousands of tons)      0,2         68,0         142,4
Average rand/dollar
exchange rate            6,13        5,06         5,54
Average copper price
realised per ton (SAR)   9 371       9 090        9 574
Cash Cost -
delivered (SAR)          6 313       5 197        4 861
Average copper
price realised (USc/lb)  69,3        81,5         78,3
All tons are metric tons
Capital Expenditure
(R million)              217         247          544
Capital commitments
(R million)
Approved expenditure
 at end of each period   1 345       2 185        1 313
Contracts placed at
end of each period       885         1 305        864
Share capital (R 000)
Ordinary shares of
R1 each (thousands)      28 316      28 316       28 316
Earnings per share,
based on the net
profit after tax         R7,52       R3,37        R9,69
Headline earnings per
share, based on the
net profit after tax
adjusted for non-
operational gains/
losses                   R4,69       R3,37        R10,12
Net asset value per
share                    R41,49      R30,06       R33,99
Dividends paid (R 000)
1998 final dividend
70 cents per share       19 821
(1997 : 100 cents
per share)                           28 316
1998 total dividend
250 cents per share                               70 789
1999 first interim
dividend 30 cents
per share                8 495
(1998 : 50 cents per share)          14 158

COMMENTARY

Consolidated Group Profit for the first half of 1999 was R213 million,
compared with R95 million achieved for the equivalent period last year. The
increase in profit is attributable to the reduction in the corporate income
tax rate from 35% to 30% announced by the Minister of Finance in February
1999 worth R88 million and operating cost savings.  These savings arose from
discontinuation of copper purchases made in 1998, divestment of overseas
subsidiaries in October 1998,an increase in product stocks which impacts on
the cost of sales adjustment and a restructuring programme undertaken in the
first half of 1999.

The Rand copper price achieved for the first half of 1999 was R9 371/ton
against R9 090/ton for the equivalent period in 1998.  Revenue was R166
million less than the R852 million achieved for the corresponding period
last year.  A major refurbishment project was undertaken on the rod casting
plant in May/June 1999.  In order to maintain supply to customers, rod
stocks were built up in advance of the shut-down period.  This caused an
escalation in product stock which will be dissipated in the coming months.

Copper in concentrate produced was 47 458 tons, a decrease of 31% compared
with the same period in 1998.  This was attributable to a reduction in the
average head grade treated - substantial quantities of low grade stock pile
material are being treated as part of the transition to the underground
mine.

Production of copper cathodes decreased from 47,256 tons to 45,857 tons over
the comparable period due to operational difficulties in the smelter.

Initiation of caving in the underground project is scheduled for September
2000.  This will enable full production to be achieved by November 2002 as
planned.

The year 2000 compliance project commenced in 1997.  The objectives set for
completion by the end of June 1999 were largely achieved.  The remaining
facets of the project are restricted to integrated testing of systems, fine-
tuning of continuity plans and further visits to evaluate the likely
compliance of our business partners.

The company does not anticipate material operational difficulties arising
from the transition to the year 2000.  No material liabilities are expected.
The year 2000 project expenditure to date is R6.02 million.  The forecast
cost to completion is R7.90 million.

Z.W. Ntuli               Chairman
J.G. Deyzel              Managing Director

Declaration of Dividend

Notice is hereby given that Dividend No. 129 of 30 cents per R1 share, being
the second interim dividend for the year ending 31 December 1999, has been
declared payable to shareholders registered in the books of the company on
30 July 1999.

The dividend is declared payable in the currency of the Republic of South
Africa.  Dividend warrants will be posted on or about 27 August 1999.

The Transfer Books and Register of Members will be closed from 31 July 1999
to 13 August1999, both days inclusive.

By order of the Board
RIO TINTO MANAGEMENT SERVICES
SOUTH AFRICA (PTY) LIMITED
Secretaries
Per: K LENDRUM

Directors:
Z.W. Ntuli,(Chairman), J.G. Deyzel (Managing Director),
Dr J.W. Campbell, (Alt. R. M. Whyte***), F. Fenwick***, J Gorman***, O.L.
Groeneveld**,
A.J. Leroy*, R.W. Letten***, M.R. Maruma, M.G. Negota, J.H. Schickler***,
T.C.A. Wadeson***, (Alt. A.H. Calver***)

*American  ** Australian  ***British

Transfer Secretaries:                Registered Office:
Computershare Services Ltd.          1 Copper Road
41 Fox Street                        Phalaborwa
Johannesburg 2001                    1390

Postal Address :                     Postal Address :
P O Box 61051                        P O Box 65
Marshalltown 2107                    Phalaborwa 1390