Coal & Allied

Rio Tinto PLC
02 May 2007


Coal & Allied announces production cutback

Coal & Allied has announced production cutbacks at its three Hunter Valley
sites.

It follows advice the company's port and rail allocations will be reduced for
the remainder of 2007.

Coal & Allied Managing Director Douglas Ritchie said the cutbacks were
unavoidable given the reduction in allocation levels.

'We need to reduce our total production this year by approximately 20 per cent
to adapt to these revised allocation levels,' Mr Ritchie said.

'The changes are being implemented to bring our production levels into line with
the reduced allocation of port and rail capacity made available to all users.

'The current system of allocation and planning is clearly untenable.

'We are working with other parties involved in the coal logistics chain to
develop a long term strategy to provide a more stable basis for industry to
operate in.'

Mr Ritchie said the production cuts will mean the loss of the equivalent of 250
contractor positions at Bengalla, Mount Thorley Warkworth and Hunter Valley
Operations.

Coal & Allied will continue to maintain its skills base to ensure it operates
its mines safely and efficiently.


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