Coal & Allied Half Year Rept.

RIO TINTO PLC
20 July 1999

COAL & ALLIED INDUSTRIES LIMITED
(INCORPORATED IN NSW)
ACN 008 416 760

LEMINGTON ROAD  RAVENSWORTH via SINGLETON  NSW  2330
                                                                          
                                                  TELEPHONE:  [phone]
                                                        FAX:  [phone]
                                                                          
                                                           POSTAL ADDRESS:
                                                                PO BOX 315
                                                        SINGLETON NSW 2330


            COAL & ALLIED INDUSTRIES LIMITED PRODUCTION REPORT
                    FOR THE QUARTER ENDED 30 JUNE 1999

                                                            Half    Half
                    2Q      3Q      4Q      1Q      2Q      Year    Year
                    1998    1998    1998    1999    1999    1999    1998

Total production and sales from the Hunter Valley Mine (Coal & Allied
100%) and the Mount Thorley Mine (Coal & Allied 80%), both in New South
Wales, Australia :

(100% basis)

Hunter Valley
   Coking coal
('000 tonnes)       462     568     699     703     571     1,274   1,247
   Thermal coal
('000 tonnes)       1,114   1,072   830     749     754     1,503   1,903

Mount Thorley
   Coking coal
('000 tonnes)       811     593     580     622     691     1,313   887
   Thermal coal
('000 tonnes)       366     607     757     676     497     1,173   493

Total production
('000 tonnes)       2,753   2,840   2,866   2,749   2,513   5,262   4,530
Total sales
('000 tonnes) *     2,376   2,958   3,050   2,698   2,442   5,140   4,543

*Sales relate only to coal mined by the operation and exclude traded coal.


Hunter Valley mine production was lower in the first half of 1999 than the
first half of 1998.  The production rate in the first half of 1998 was
high in order to complete contracts disrupted by industrial actions in the
previous six months. The production in the first half of 1999 reflects
productive capacity following the mine restructure which occurred in 1999.

Mount Thorley mine production for the first half of 1999 was higher than
for the first half of 1998, which was affected by an industrial dispute.

For further information contact:
GERARD PARLANE
Company Secretary
02 6570 0300

                     Coal & Allied Industries Limited
                            A.C.N.  008 416 760
                                     
             Lemington Road Ravensworth via Singleton NSW 2330
                 Phone [phone]  Fax [phone]
                       PO Box 315 Singleton NSW 2330

20 July 1999

The Manager Companies
Australian Stock Exchange Limited
Exchange Centre
20 Bridge Street
SYDNEY   NSW   2000


          HALF YEAR REPORT AND DIVIDEND ANNOUNCEMENT

Consolidated  profit after tax and abnormal expense  for  the  six  months
ended 30 June 1999 (unaudited) was $34.9 million compared with a profit of
$34.1 million for the same period last year.  The profit includes a credit
for  net  interest of $4.4 million (compared with $0.6 million credit  for
the  same  period last year) and is after charging depreciation  of  $23.4
million (compared with $29.0 million for the same period last year).

An  abnormal expense of $4.6 million after tax was included as a provision
for  the  restructuring at Mount Thorley Mine announced in June 1999.   In
the  corresponding period in 1998, a provision of $4.5 million  after  tax
was incurred for the restructuring at Hunter Valley No.1 Mine.

Operating  profit  after tax and before abnormal items was  $39.4  million
compared with a profit of $38.6 million for the corresponding period  last
year.


Dividends

The  directors have declared an interim dividend of 35 cents per  ordinary
share  fully  franked  at the tax rate of 36%, and an  interim  preference
dividend of 1.75 cents per preference share fully franked at a tax rate of
36%.   In  1998,  an interim dividend of 40 cents per ordinary  share  was
paid,  of  which  14.6  cents was franked at  the  tax  rate  of  36%  and
25.4 cents was unfranked.


Review of Operations

Production for the six months ended 30 June 1999 was up 0.7 million tonnes
to 5.3 million tonnes compared with the same period last year.

At the Mount Thorley Mine, production was higher than the same period last
year due to a reduction in industrial action.  In 1998, Mount Thorley lost
60  days of production due to industrial disputes compared with 7 days  in
the  first half of 1999.  Hunter Valley mine production was lower  in  the
first  half of 1999 than the first half of 1998.  The production  rate  in
the  first  half of 1998 was high in order to complete contracts disrupted
by  industrial actions in the previous six months. The production  in  the
first  half  of  1999  reflects  productive capacity  following  the  mine
restructure that occurred in 1999.

Coal shipments for the first six months were up 0.6 million tonnes to  5.1
million  tonnes  compared with the same period  last  year.   Despite  the
increased   shipments,   sales  revenue  was   down   $10.5   million   to
$251.9  million.  This reduction in sales revenue is primarily due to  the
effect of lower US dollar coal prices.


Prospects

The  profitability of the company will be lower in the second half due  to
the impact of weaker prices effective from April 1999 partially offset  by
cost reductions from improved work practices and operational efficiencies.
The  restructure  at  Mount  Thorley Mine will  continue  the  process  of
improving  work practices which will ensure the longer-term  viability  of
the mine.

The oversupply in world coal markets and reduced economic activity in many
Asian  countries  has  resulted in coal prices  remaining  low.   This  is
expected to continue for the second half of this year.

In  February  1999,  shareholders were advised that discussions  with  Rio
Tinto  were  taking place regarding the purchase of Rio Tinto's  NSW  coal
assets.  In May it was announced that an agreement had been signed between
the  parties  and  that  a proposal would be put before  an  extraordinary
general  meeting of shareholders to approve the purchase.  It is  expected
that this meeting will occur in the third quarter.