Coal & Allied Final Results

Rio Tinto PLC
16 February 2000



The  following  was released earlier today to  the  Australian
Stock Exchange by Coal & Allied Industries Limited.
                               

Coal & Allied 1999 Results                          

Coal  &  Allied's net profit after tax for the year  ended  31
December  1999 was $67.6 million, compared with $88.5  million
in 1998.

The  lower  operating  profit  was  a  result  of  a  stronger
Australian  dollar  ($7.5  million) and  reduced  coal  prices
($48.5 million).  Increased volumes ($14.5 million) and  lower
costs  ($17.9  million) partly offset these negative  impacts.
Sales  revenues were $528.1 million, down from $588.3  million
in 1998.

During  the  year, as a result of the purchase of Rio  Tinto's
New  South  Wales  coal  assets,  the  company  increased  its
effective  shareholding in Port Waratah Coal Services  Limited
(PWCS)  from  30%  to  33.7%.   PWCS  owns  and  operates  the
Newcastle  coal  loading facilities.  Coal  &  Allied  is  now
equity accounting its investment in PWCS and this resulted  in
an abnormal gain of $22.1 million in 1999.

Significant research and trialing identified a suitable method
for  extinguishing a fire in an old underground colliery  that
has  been  burning for twenty-eight years.  Coal & Allied  has
provided an additional $25 million, before tax, as an abnormal
item  in  1999  for a long-term programme to  extinguish  this
fire.   This brings the total provision for this work  to  $28
million.

Coal  &  Allied Managing Director, Dr Kim Tronson, said,  'The
1999  result  was  achieved  in  a  difficult  market  through
increased  productivity  and  reduced  costs.  The  continuing
market   weakness  demonstrates  the  need  to  further   lift
productivity and reduce costs at all our operations.

'The recent restructuring of the Mount Thorley Operations  and
the  amalgamation of the Hunter Valley No. 1 and Howick  mines
are already contributing in a positive way.  Over the next few
years,  we  expect  to  achieve further  cost  reductions  and
increased operating efficiencies as a result of work  practice
changes,' he said.

Directors declared a final fully franked dividend of 45  cents
per  ordinary share compared with 60 cents for the same period
in  1998, making total fully franked dividends for the year of
80 cents (1998 100 cents).

Coal  &  Allied's production in 1999 was 11.0 million  tonnes,
compared  with 9.5 million tonnes in 1998.  This  increase  in
production  was partly due to the acquisition  of  the  Howick
mine during the year.

Safety  performance, while better in 1999 than in 1998,  needs
to  be  improved further.  Coal & Allied is committed to major
improvements.  Programs, which seek to involve all  employees,
have been designed to lift safety performance dramatically  at
all sites.

The   Mount   Pleasant  development  application   was   given
ministerial  planning  approval  on  10  February  2000.   The
approval  process  included a comprehensive community  liaison
and consultation programme.


Markets and Outlook

In  1999  contract  coal  prices fell  between  13%  and  18%,
reflecting  continuing oversupply in all coal categories.  For
the first time, the Japanese Steel Mills purchased coking coal
on  a  spot  basis.  This reflected both the increasing  crude
steel  production in the second half of the year and also  the
oversupply in coking coal.

Coal  &  Allied has a long-term domestic coal supply  contract
with Macquarie Generation which was acquired with the purchase
of  Rio  Tinto's  NSW coal assets.  Macquarie  Generation  has
suspended  purchases under the contract due to a dispute  over
coal   quality  specifications.  Coal  &  Allied  is   seeking
resolution of this dispute in the NSW Supreme Court.

Coal  &  Allied  has  continued to  operate  profitably  under
difficult   market  conditions.  However  total  returns   are
unsatisfactory,  and  the  current  environment   will   place
additional  pressure  on financial performance  in  2000.  The
company  will  respond  by improving  market  penetration  and
productivity  and  paying close attention to costs.  Continued
focus  will  be given to pursuing work practice changes,  cost
efficiencies and reduced manning levels.


         Summary of Results
                                       1999     1998
                                                   
         
         Net profit after tax          67.6     88.5
         and abnormal items (A$ m)
                                                   
         Total dividend                80       100
         (cents/ordinary share)
                                                   
         Operating cash flow (A$ m)    74.4     176.1
                                                   
         Sales revenue (A$ m)          528.1    588.3
                                                   
         Return on shareholders'       14.5     22.1
         funds (%)
                                                   
         Production (m tonnes)         11.0     9.5


For further information contact:

Media Relations                    Investor Relations

Alexis Fernandez                   Peter Jarvis
+ 44 207 753 2305                  + 44 207 753 2401


Website: www.riotinto.com

Note to Editors:

All $ are Australian dollars.
Rio Tinto owns 70.9 per cent of Coal & Allied Industries.