ERA Half year results 2002

Rio Tinto PLC
24 July 2002




                                                    ERA Half year results 2002




                                                                      6 month ended        6 month ended
                                                                       30 June 2002         30 June 2001          Change
Sales revenue ($ million)                                                      71.6                 78.5             -9%
Earnings before interest and tax ($ million)                                    9.1                 11.2            -19%
Net profit after tax ($ million)                                                3.3                  5.1            -36%
U308 production (tonnes drummed)                                              1,863                2,251            -17%





Rio Tinto's 68.4 per cent owned Energy Resources of Australia Ltd. (ERA) today
recorded a net profit after tax of $3.3 million for the six-month period to 30
June 2002 compared with a profit of $5.1 million for the same period in 2001.



The reduced profit after tax was due to a reduction in sales volumes
attributable to the timing of delivery to customers and the increase in the
effective $A:$US exchange rate of 64.5 cents in maturing forward exchange
contracts (up from 63 cents in the previous corresponding period). The losses on
settlement of forward exchange contracts was $12.7 million before tax for the
period.



Dividends



Given the level of profit, the Directors do not believe it appropriate to
declare an interim dividend but expect to declare a final dividend in respect of
the full year.



Sales



Sales revenue was $71.6 million (2001: $78.5 million). Sales volumes are
expected to increase in the second half of the year with total volume within the
range of 4,600 - 4,900 tonnes U305 for the 2002 year.



Operations



Production (drummed) decreased to 1,863 tonnes U308 (2001: 2,251 tonnes U308).
The present level of production has been set to meet anticipated sales and
inventory drawdowns.



Developments



The environmental capabilities of the Company continue to be strengthened,
particularly in relation to achieving compliance and accreditation with ISO
14001 - a world standard of environmental excellence, through a transparent
process involving regulators and Aboriginal representatives to ensure
stakeholder expectations are understood, ERA's obligations are met and that the
operations continue to have no detrimental impact on the surrounding
environment.



The recently announced Senate Inquiry and NT investigation into environmental
management of uranium mining will provide ERA with opportunities to demonstrate
its record of protecting the surrounding Kakadu environment and to reaffirm our
commitment to ongoing environmental performance.



In addition, ERA is implementing a major business improvement program during
2002 and continuing throughout 2003 to achieving more efficient work practices
and significant cost savings that will deliver an improved and sustainable
financial performance.



During the remainder of 2002, ERA will continue to participate in public
reporting processes which aim to deliver the highest standards of environmental
care. The Company looks forward to the opportunity to express its views during
these processes on the effectiveness of these reporting regimes and the changes
and improvements that ERA would like to see adopted.



Market Outlook



The spot price for uranium has remained at $9.90/lb for the majority of the
first half of the year. No significant change is anticipated in the demand and
supply fundamentals in the short run, but new demand anticipated in the third
quarter of 2002 should see a modest rise in price.



ERA expects the prevailing market conditions to be maintained, with the spot
price continuing to firm, climbing to long run sustainable levels over the next
few years.



Two major events have occurred recently, which should provide a more positive
long-run environment for the further development of nuclear power. Firstly, the
Finnish Government recently voted to build a fifth nuclear reactor, a
significant event given that the last reactor approval in Europe was 15 years
ago. This decision reflects the growing awareness in Europe that nuclear power
is a vital part of the energy future of most countries, particularly in the
light of constraints on emission of greenhouse gases. Secondly, the US Senate
has voted to proceed with establishing a nuclear waste repository for spent fuel
from commercial reactors, at Yucca Mountain in Nevada.



Due to the timing of customer deliveries, a higher percentage of the year's
sales volume will occur in the second half of the year. At the current exchange
rate level and with the expected lower exchange rates, it is anticipated that
the Company will exceed its after tax profit of 2001 ($8.1 million).



For further information, please contact:


LONDON                                                  AUSTRALIA
Media Relations                                         Media Relations
Lisa Cullimore                                          Ian Head
+ 44 (0) 20 7753 2305                                   [phone]
Investor Relations                                      Investor Relations
Peter Cunningham                                        Dave Skinner
+ 44 (0) 20 7753 2401                                   [phone]
Richard Brimelow                                        Daphne Morros
+ 44 (0) 20 7753 2326                                   [phone]



Website: www.riotinto.com






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