Energy Resources - Interims

Rio Tinto PLC
29 January 2001


Energy Resources of Australia Ltd, an Australian public company which is 68.4
per cent owned by Rio Tinto, issued the following in Australia today.  All
dollars are Australian except where otherwise shown.  
 
             Half Yearly Profit, Production & Exploration Report              
                       to 31 December 2000 (unaudited)                        
 

                                                                              
                    Current year   Current year   Previous year  Previous year
                        3 months       6 months        3 months       6 months
                           ended          ended           ended          ended
                     31 December    31 December     31 December    31 December
                            2000           2000            1999           1999
                                                                          
  Sales revenue             44.3           71.5            50.1           77.7
  ($ million)                                                                 
  Earnings                  11.2           15.0            10.3           17.1
  before                                                                      
  interest and                                                                
  tax ($ million)                                                             
  Profit after               6.4            8.0            16.2           19.2
  tax ($                                                                      
  million)                                                                    
  Production -             1,232          2,361           1,159          2,068
  drummed                                                                     
  (tonnes U3O8)                                                               
  Ore treated                498            995             422            752
  ('000 tonnes)                                                               
  Average grade            0.296          0.266           0.297          0.290
  (%)                                                                         
 
Energy Resources of Australia Ltd (ERA) today announced an operating profit
after tax of $8.0 million for the first half of the year. This compares to
$19.2 million for the same period last year, which included recognition of an
abnormal income tax benefit of $12.3 million.

Earnings before interest and tax was $15.0 million for the half year compared
to $17.1 million in 1999. EBIT has reduced mainly as a result of lower
selling prices. This adverse impact has been partially offset by the impact
of operating cost savings.
 
Sales revenue for the half year decreased slightly compared to last year to
$71.5 million (1999: $77.7 million).
 
The spot market price ended the calendar year at an historic low for the
industry of $US7.10 per pound U308 (1999: $US9.60 per pound U3O8) primarily
due to the lack of utility spot demand, off-market long term contracting by
utilities and the removal of US trade restrictions on Uzbek and Ukraine
uranium.
 
Recently spot prices appear to have bottomed. While the spot price is
expected to show some improvement during the coming year, the low spot market
will continue to adversely influence ERA's results with approximately 50 per
cent of the Company's contracts affected.
 
For the remainder of the financial year, the Company anticipates that the
tonnes of ERA U3O8 sold will result in volumes slightly lower compared to
last year (1999/2000: 4,514 tonnes U3O8).
 
The lower volumes and spot price will result in the full year operating
result for 2000/01 being lower than that achieved in 1999/2000 ($34.7 million
profit after tax which included an abnormal income tax benefit of $12.3
million).
 
ERA Directors have declared an interim dividend for the half year of three
cents per share in line with current earnings (the 1999/2000 interim dividend
of 10 cents reflected the abnormal income tax benefit noted above). The
interim dividend will be fully franked at 34 per cent and will be paid on 28
February 2001. The record date for the dividend is 14 February 2001. The
Company's Dividend Reinvestment Plan and Bonus Share Plan will not operate in
respect of this dividend.
 
In December 1999 ERA paid a special dividend of 31.0 cents per share which
distributed all retained earnings to shareholders. Thus, future dividends
will be constrained to the extent of earnings.
 
 
PRODUCTION 
 
During the second quarter ended 31 December 2000, ERA produced 1,232 tonnes
U3O8 (1999: 1,159 tonnes U3O8).
 
In line with the company's 2000/2001 production plan, total production for
the half year was 2,361 tonnes U3O8 (1999: 2,068 tonnes U3O8) at an average
mill feed grade of 0.27 per cent (1999: 0.29 per cent), reflecting the
company's increased scheduling requirements for sales that traditionally
occur during the second half of the financial year.
 
1.1 million tonnes of ore were mined at 0.30 per cent U3O8 during the half
year (1999: 2.1 million at 0.27 per cent U3O8).
 
Capital expenditure of $2.9 million (1999: $5.3 million) largely relates to
improvements in Ranger ore processing systems and to the Jabiluka development.
 
 
EXPLORATION & EVALUATION EXPENDITURE 
 
ERA capitalised $1.0 million of development expenditure with regard to the
Jabiluka project. This expenditure related primarily to evaluation work and
environmental commitments.
 
 
DEVELOPMENTS 
 
Through appropriate consultation, ERA remains committed to seeking local
Aboriginal approval for the Jabiluka development to proceed and augment the
delivery of better social and economic outcomes for the region.
 
As such, the Jabiluka development is currently on stand-by and environmental
care while ERA continues to provide information about the Company to the
Northern Land Council.
 
The Company continues to assist Rio Tinto in its ongoing strategic review
process of ERA.
 
 
 
For further information, please contact:
 
LONDON 
 
Media Relations                 Investor Relations 
Lisa Cullimore                  Peter Jarvis
+ 44 (0) 20 7753 2305           + 44 (0) 20 7753 2401
 
AUSTRALIA 
 
Media Relations                 Investor Relations 
Ian Head                        Dave Skinner
[phone]             [phone]
                         
                                Daphne Morros
                                [phone]
Website: www.riotinto.com
ERA's website: www.energyres.com.au