Yarwun Alumina Refinery

Rio Tinto PLC
03 July 2007


Rio Tinto to proceed with US$1.8 billion expansion of Yarwun Alumina Refinery


Rio Tinto has approved a US$1.8 billion expansion of the Yarwun Alumina Refinery
in Gladstone, Queensland. The expansion will more than double annual production,
increasing output by two million tonnes to 3.4 million tonnes by 2011.


Rio Tinto's long life resource at Weipa in northern Queensland will supply
bauxite to the refinery.   The Yarwun expansion will have the benefit of
substantial scale efficiencies gained from the construction of the first stage
of the refinery.


Tom Albanese, Rio Tinto chief executive, said, 'The expansion of the Yarwun
Alumina Refinery is one of the most significant investments made by Rio Tinto in
recent years. The attractive fundamentals of the aluminium industry, combined
with Yarwun's well located, low cost position and our excellent bauxite resource
at Weipa, reinforce the deep underlying strength of the group's organic growth
pipeline.'


Oscar Groeneveld, Rio Tinto Aluminium chief executive, said, 'This project
firmly positions Rio Tinto in the first quartile of the alumina cost curve and
creates the future supply for the growth in the world traded alumina market.
The expansion further strengthens our aluminium infrastructure in Gladstone and
Queensland. We have received a high level of encouragement from Federal, State
and local governments as well as community support.


'One important feature of the project is the inclusion of a gas-fired
cogeneration facility. Gas will become the refinery's primary fuel source,
demonstrating our ongoing commitment to reducing greenhouse gas emissions and
improving energy efficiency.'


Work will commence on the expansion in the third quarter of 2007 and it is
expected to take about three years to complete. First shipments are expected in
the second half of 2010.  All government approvals have been granted.


For further information, please contact:

LONDON                                               AUSTRALIA

Media Relations                                      Media Relations

Christina Mills                                      Ian Head

Office: [phone]                         Office:  [phone]

Mobile: [phone]                         Mobile: [phone]

                                                     
Nick Cobban

Office:  [phone]

Mobile: [phone]

Investor Relations                                   Investor Relations

Nigel Jones                                          Dave Skinner

Office: [phone]                         Office:  [phone]

Mobile: [phone]                         Mobile: [phone]


David Ovington                                       Susie Creswell

Office:  [phone]                        Office:  [phone]

Mobile: [phone]                         Mobile: [phone]


Website: www.riotinto.com

High resolution photographs available at: www.newscast.co.uk


                      This information is provided by RNS
            The company news service from the London Stock Exchange