US$475m increase IOC capacity

Rio Tinto PLC
11 March 2008

Rio Tinto announces US$475 million first phase expansion to increase IOC
capacity by 50 per cent


11 March 2008


Rio Tinto has announced the approval of a US$475 million project to increase the
Iron Ore Company of Canada's (IOC) annual production of iron ore concentrate to
22 million tonnes.  The investment is the first phase of an IOC expansion
program that may see production capability increase 50 per cent by 2011.

Work will commence immediately to expand IOC's mining and processing facilities
in Labrador West and increase transportation capacity on its 418 kilometre
railway to its port facilities in Sept-Iles, Quebec.  The investment includes
the purchase of new mining equipment as well as installation of a new crusher
station in the mine and autogenous grinding mill in the concentrator and a six
kilometre overland conveyor to link them together.  New locomotives and rail
cars will be purchased to increase railway capacity.

The remainder of the expansion program is currently in feasibility studies and a
decision will be made later this year on plans to increase annual concentrate
production further to more than 25 million tonnes, including an increase in
pellet production to 14.5 million tonnes.

IOC chairman and Rio Tinto Iron Ore chief executive Mr Sam Walsh said the
decision highlighted not only the value of Rio Tinto's global platform of iron
ore production, but also the level of confidence in market conditions over the
longer term.

'The iron ore market is as tight as it has ever been and our sustained and
substantial reinvestment in our operations in Canada and worldwide demonstrates
the confidence we have in that market. The IOC expansion program emphasises the
Group's ability to increase supply from an existing strong base on several
continents,' Mr Walsh said.

Mr. Terence F. Bowles, president and CEO of IOC, said the expansion will provide
substantial employment and community growth in the Labrador West region. IOC's
1,900-strong workforce, one of the largest in the Newfoundland and Labrador
industrial sector, will grow by 200 with this expansion.  Construction jobs are
expected to peak at 250 over the next three years.  In addition to economic
benefits from growth in tax revenues and local commerce, Labrador West will
benefit from improvements in infrastructure, transportation, recreation and
social services.

'This investment secures the long-term future of our operations and improves the
livelihoods of those around us,' said Mr. Bowles, speaking at a news conference
broadcast on-line from St. John's, the capital city of Newfoundland and
Labrador. 'IOC has been the main driver of the Labrador West economy for more
than 50 years, and this expansion programme ensures that a new generation of
families in the region can be confident that there will be rewarding careers for
years to come,' he added.

'This major expansion reflects the current strong market conditions as well as
the confidence of our shareholders in our ability to deliver,' added Mr. Bowles.
  The investment is one of many being made in Canada by IOC's major shareholder
and operator, Rio Tinto, which has activities in more than 40 countries
worldwide.  This includes mining developments and acquisitions in British
Columbia, Northwest Territories and Quebec.

IOC's commitment to sustainable development is fully reflected in its expansion
program.  The company is working very closely with local community stakeholders
in Labrador City and Sept-Iles to optimize economic and social impacts and to
protect the natural environment. Community consultations are well underway to
ensure that this expansion proceeds in the best interests of the communities and
IOC.



About Iron Ore Company of Canada


IOC is Canada's largest iron ore producer, with iron ore being one of Canada's
most important mineral products in terms of both tonnage and value.  IOC is
known globally for the high quality of its products, which are often used in
blends by steelmakers to improve quality and meet specifications to improve
quality and productivity and reduce greenhouse gas emissions.  Its broad product
range is sold globally to all segments of steel industry including the high
growth direct-reduction sector. IOC had approximately 416 million tonnes of iron
ore reserves and 1.37 billion tonnes of iron ore resources as at 2006* and it
continues to have significant resources and exploration potential.

Rio Tinto is the major shareholder and operator of IOC (58.72 per cent), along
with Mitsubishi Corporation (26.18 per cent), and Labrador Iron Ore Royalty
Income Fund (15.10 per cent). Rio Tinto is a leading international mining group
headquartered in the UK, whose focus is finding, mining, and processing mineral
resources. Rio Tinto Iron Ore is headquartered in Perth, Western Australia.

(* Source: Rio Tinto Annual Report 2006)




Media Kit: www.ironore.ca. Play or Download the recorded Webcast from the
announcement, a Project Overview video clip, PowerPoint presentation and
Backgrounder.



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.

                                                                        Cont.../




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:

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Media Relations, Americas
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