Subsid's Interim Results

RIO TINTO PLC
26 July 1999

                Comalco 1999 Half Year Results

FINANCIAL SUMMARY

Net profit after tax and before abnormals for the half year to
30  June  1999  was $96.8 million, down $27.0 million  on  the
first half of 1998.

Lower  prices  reduced  revenue by $94 million.  Higher  sales
volumes ($20 million), operational and other cost improvements
($28 million), and reduced funding costs ($20 million) largely
offset the revenue decline.

There were no abnormal items in either half year.

An  unfranked  interim  dividend of  9  cents  per  share  was
declared, down one cent on the 1998 interim dividend.

In announcing the results, Comalco's Chief Executive, Mr Terry
Palmer said, 'This is quite a satisfactory result, considering
that average aluminium prices were 11.5% below last year.  The
effect of the low aluminium prices was substantially offset by
cost reductions and volume improvements.

'Record  production rates were achieved at all three  smelters
and  all  cells are operating at Boyne Island Line 3 following
negotiations for additional energy.

'In  1996,  Comalco  announced a target  reduction  in  annual
operating  costs of $200 million (before tax), to be  achieved
by  the end of 1999. We achieved 93% of this target by the end
of  June 1999. We will beat the $200 million target this  year
and  expect  that  our  performance enhancement  process  will
continue to drive gains.

'Comalco's operating performance, combined with reductions  in
capital expenditure, have resulted in a strong cash flow.  The
gearing ratio (net debt to net debt plus shareholders'  funds)
was  reduced  from 38% at the end of 1998 to 33%  at  30  June
1999.

'Comalco  has maintained aluminium sales into core markets  in
Asia and our new markets in the Northern Hemisphere. We expect
moderate levels of global growth for aluminium in the  balance
of  1999 and only slow recovery in Japan.  The USA and  Europe
remain very important to market stability. In the medium term,
demand  growth  should  exceed 3% per  annum.  The  automotive
industry will be a significant contributor to this growth.

'For  the balance of 1999, a primary focus will be to continue
the  improvement in performance and profitability of  existing
businesses.

'Comalco  is  close  to concluding preliminary  agreements  in
Malaysia for energy supply for a potential alumina refinery in
Sarawak.   For  the Gladstone site, Comalco has a  preliminary
agreement   with  Allgas,  a  subsidiary  of  the   Queensland
Government owned Energex on terms for the supply of  gas  from
Papua New Guinea.

'When  Allgas  and  the PNG Joint Venture have  a  preliminary
agreement,  final feasibility work can commence in  Gladstone.
Similar  work  will  commence in Malaysia when  a  preliminary
energy supply agreement is signed there.

'Comalco  plans  to decide on location when final  feasibility
studies  are  complete  and  firm energy  commitments  are  in
place.'

SUMMARY OF FINANCIAL RESULTS ON A JOINT VENTURE BASIS

Comalco's results for the half-year to 30 June 1999 are  shown
below, along with comparative results for the half-year to  30
June  1998, and the year ended 31 December 1998. The 1999  and
1998  half-year results have been subject to review,  but  not
full audit, by the external auditors.

                             Half    Half     change    Year
                             Year    Year     %         1998
                             $       $                  $
                             million million            million

Sales revenue
                             955.0   1,034.1  (7.6)     2150.3
Earnings before interest,
tax, depreciation and
amortisation                 272.6   318.8    (14.5)    618.5
Net profit after tax
                             96.8    123.8    (21.8)    236.1
Dividend -
cents per share              9       10       (10.0)    23


Dividend
Directors  declared an unfranked interim dividend of  9  cents
per  share  (1998 interim unfranked dividend of 10  cents  per
share).  It is unlikely that dividend payments will be franked
before the second half of the year 2000.

The  dividend will be paid on 1 September 1999 to shareholders
registered  at  close  of business (10.00  pm  in  respect  of
holdings on the CHESS subregister) on 18 August 1999.

New  Zealand  shareholders will be paid their  dividend  on  1
September  1999  in New Zealand currency at the  Bank  of  New
Zealand   telegraphic  transfer  buying  rate  for  Australian
currency on 18 August 1999.

Sales Revenue
Revenues decreased 8% in the first half of 1999 compared  with
the  first  half  of 1998. The average London  Metal  Exchange
(LME) price of aluminium was down 12% in US dollar terms  (11%
in Australian terms), and product premiums were soft.

Aluminium  sales volumes increased 3% compared  to  the  first
half of 1998.

Cash Flow
Operating  cash  flow after tax for the  half  year  was  $267
million, compared with $391 million in the first half of 1998.
Lower  capital expenditure partially offset reduced cash  flow
from operations.

Debt
Net  debt  decreased by a total of $179 million over the  half
year  to  $876 million as a result of debt repayments of  $120
million  and  revaluation of US dollar debt  obligations.  The
Australian dollar strengthened against the US dollar from US61
cents  at  the end of 1998 to US66 cents at the  end  of  June
1999.

Capital Expenditure
Capital expenditure decreased to $55 million in the first half
of  1999  from $82 million in the comparable period  in  1998.
Expenditure  in  1999 related mainly to capital  spending  for
cost reduction and operations improvement projects.

PRICES AND INTERNATIONAL INDUSTRY CONDITIONS
Market Conditions
Economic  uncertainty  in  Asia continued  to  overshadow  the
aluminium market in the first half of 1999.

The  LME cash price for aluminium averaged US$1,250 per  tonne
in  the first half of 1999 (US56.7 cents per pound), down  12%
from  US$1,413 per tonne (US64.1 cents per pound) in the first
half  of 1998. The LME cash price fell from US$1,238 per tonne
(US56.2  cents  per  pound) at 31 December  1998  to  reach  a
historical  low  in real terms of US$1140 per tonne  (US  51.7
cents  per pound) in early March before recovering to US$1,368
per  tonne  (US62.1 cents per pound) at 30 June 1999.   On  20
July  1999, the cash price was US$1430 per tonne (US64.9 cents
per pound).

The US$:A$ exchange rate averaged US64 cents in the first half
of  1999, down 0.6% from US65 cents in the first half of 1998.
At  30 June 1999 the US$:A$ exchange rate was US66 cents,  but
has since weakened to US65 cents at 20 July 1999.

The Asian economic downturn resulted in reduced demand in many
Asian   countries   in   1998,  particularly   affecting   the
construction industry. In the first half of 1999,  there  were
encouraging signs of increasing demand in parts of Asia, and a
bottoming  of  demand in Japan. Demand in  the  United  States
remained strong.

LME  stocks of primary aluminium increased from 635,000 tonnes
at the 31 December 1998 to peak at in excess of 820,000 tonnes
in late March, and have since declined to reach 757,000 tonnes
by 30 June 1999.

A  one  US  cent change in the annual average aluminium  price
results  in  a change in Comalco's profit after tax  of  about
A$15 million per year. A one-cent change in the annual average
US dollar exchange rate for the Australian dollar results in a
change  in  profit after tax of about A$13 million  per  year.
These  sensitivities are based on average exchange rates,  LME
prices and annualised volumes at the levels prevailing in  the
first half of 1999.

Outlook
The aluminium markets are expected to experience only moderate
demand  growth over the next six to twelve months, but in  the
medium  term  it is anticipated that the Asian economies  will
emerge stronger and more competitive.  Japan holds the key  to
recovery  in  the  region due to the size of its  economy  and
intra  regional  trade. Demand in Japan is  likely  to  remain
depressed   until   employment  prospects  improve.   Business
conditions  in Europe remain relatively flat while the  United
States economy continues to show strong performance.

REVIEW OF OPERATIONS
Performance Enhancement Programme
By  the  end of June 1999, cost savings totalling $170 million
had  been  realised under the performance enhancement  process
(PEP),  as  compared  with the 1996  cost  base.  The  pre-tax
contribution  from increased production added  a  further  $16
million.   Comalco  expects  to  achieve  its   $200   million
improvement  target  by the end of 1999,  and  that  PEP  will
continue to drive improvement well into the future.

Health, Safety and Environment
Overall safety performance improved in the first half of 1999.
Comalco  is  committed  to continuing  improvement  in  safety
performance. Comalco recently adopted the DuPont  STOP system,
a  program of frequent job safety observation and improvement,
as a tool to raise safety awareness and focus.

Comalco  recognizes  the importance of responsible  greenhouse
management. All of Comalco's Australian operations participate
in   the  Greenhouse  Challenge  Program.  Comalco  has   also
committed to a voluntary emissions reduction program with  the
New   Zealand   Government.  Comalco  Smelting   has   reduced
greenhouse  gas emissions per tonne of aluminium  produced  by
55% since 1990.

Mining & Refining
Bauxite  production at the Weipa mine was 36% higher  than  in
the first half of 1998, and 8% higher than the second half  of
1998.  Increased production in the first half was required  to
rebuild stocks of beneficiated bauxite following completion of
the   Weipa   upgrade.   Dependant  on  market   opportunities
production  can be expected to decline by up  to  10%  in  the
second half of 1999.

Alumina  entitlements rose 46,000 tonnes  to  804,000  tonnes.
Record production was achieved at Queensland Alumina Limited.

Smelting
Comalco's   aluminium  entitlement  was  333,000  tonnes,   an
increase of 4% on the first half of 1998. The Bell Bay,  Boyne
Island  and  Tiwai Point smelters all achieved  daily  average
production  records,  benefiting  from  higher  amperages  and
process  improvements. All cells are  now  on  line  at  Boyne
Island   Line   3   following   negotiation   for   additional
electricity.

Gladstone Power Station
An  'in  principle' heads of agreement was reached in December
1998 with the Queensland Government concerning modification of
Gladstone  Power  Station contracts to  adapt  to  electricity
market  changes in Queensland.  Negotiations of the variations
to the contracts are progressing well.

Research & Technical Support
Research   and  development  expenditure  was  $5.4   million.
Programmes   continue  to  emphasise  site  support,   process
improvement  and  product  marketing  support.  This  work  is
integral to Comalco's performance enhancement process.

Comalco Alumina Project (CAP)
Engineering  and  pre-feasibility  studies  of  a   greenfield
refinery  based  on Weipa bauxite continued during  the  first
half.  Refinery locations at Gladstone in Queensland Australia
and Similajau in Sarawak, Malaysia are being evaluated.

Key   requirements  in  moving  the  project  forward   to   a
development  decision  include finalising  competitive  energy
supply  arrangements  both  for  the  short  and  long   term,
completion   of  final  feasibility  studies,  gaining   Board
approvals,  and  formalising agreements  with  governments  on
financial and infrastructure support.

In  Similajau,  Comalco  is  close to  concluding  preliminary
agreements  with  Petronas/Shell and the  Sarawak  Electricity
Supply   Corporation  (SESCo)  on  terms  for  energy  supply.
Discussions  with  the  Malaysia  Federal  and  Sarawak  State
Governments  concerning infrastructure support are progressing
well.

In  Gladstone, Comalco has reached preliminary agreement  with
Allgas,  a  subsidiary  of  the  Queensland  Government  owned
Energex,  on  terms for supply of gas from  Papua  New  Guinea
(PNG).   Allgas, acting as an aggregator for several potential
purchasers,  is  understood  to  be  close  to  a  preliminary
agreement with representatives of the PNG project sponsors.

As  soon  as  the  preliminary energy  supply  agreements  are
approved by the sponsors, final feasibility  work can commence
for  each  of  the  Malaysian and  Gladstone  sites.   Comalco
expects   final   feasibility  work  can   be   completed   in
approximately six months.   It understands it will be at least
twelve  months before the PNG project sponsors can  make  firm
commitments for supply of gas.

Comalco   plans  to decide on location when final  feasibility
studies are complete and firm energy commitments are in place.

For further information contact:
Media Relations                    Investor Relations
Geoffrey Ewing                     Dave Skinner
[phone] (office)           [phone] (office)
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