Lihir Gold/Niugini Mining

RIO TINTO PLC
6 October 1999


The  following  was  announced by Lihir Gold  Limited  on  6th
October 1999

  Joint Announcement by Lihir Gold Limited and Niugini Mining
                            Limited
                               
The  Boards  of Lihir Gold Limited ('Lihir Gold') and  Niugini
Mining Limited ('Niugini Mining') have agreed that Lihir  Gold
will acquire all the issued shares of Niugini Mining through a
Scheme of Arrangement under PNG law ('Scheme'), subject to the
conditions in the attached Appendix.

Lihir   Gold  would  issue  to  Niugini  Mining  shareholders,
collectively:

161.5  million Lihir Gold shares, being one fully  paid  Lihir
Gold share for each Lihir Gold share currently held by Niugini
Mining; and

fully  paid Lihir Gold shares in exchange for Niugini Mining's
net  cash  balance at the effective date of the  Scheme  ('Net
Cash'),  expected  to  be approximately  US$52  million.   The
number  of Lihir Gold shares to be issued in exchange for  the
Net Cash would be calculated by dividing Net Cash by the price
at  which Lihir Gold is currently undertaking an institutional
placement  (the  'Placement'). Details of the  Placement  have
been announced by Lihir Gold simultaneously with this release.
On  the  basis of yesterday's (5 October 1999) closing  market
price  of A$1.75 per Lihir Gold share, Lihir Gold would  issue
approximately an additional 45 million Lihir Gold  fully  paid
shares to Niugini Mining shareholders.

At  this  price Lihir Gold would issue to each Niugini  Mining
shareholder  approximately 1.76 Lihir Gold  shares  for  every
Niugini Mining share held, although the final ratio would  not
be determined until the amount of Net Cash has been determined
at the effective date of the Scheme.

Based  on  a  1.76:1 share exchange ratio and  yesterday's  (5
October  1999)  Lihir  Gold closing market  price  of  A$1.75,
Niugini  Mining  shareholders would receive  shares  in  Lihir
valued  at  A$3.08  per  Niugini  Mining  share  which   would
represent a premium of 19% over  yesterday's (5 October  1999)
Niugini Mining closing market price of A$2.58.

Battle Mountain, which holds 50.5% of Niugini Mining, supports
the  proposed  Scheme.   Based on the  foregoing  illustrative
terms,  Battle Mountain would hold approximately  104  million
Lihir Gold shares following completion of the Scheme, and  has
agreed to hold the shares of Lihir Gold which it receives  for
at  least  three months following the effective  date  of  the
Scheme.

On  completion  of the Scheme, Niugini Mining would  become  a
wholly   owned  subsidiary  of  Lihir  Gold,  with  its   only
significant assets being shares in Lihir Gold and cash.  Lihir
Gold  intends  to  cancel  the 161.5 million  shares  held  by
Niugini  Mining,  subject  to  regulatory  approval   and   if
necessary  approval of the PNG Court. Excluding these  shares,
the  Scheme would result in Lihir Gold's issued capital  being
expanded by the issue of approximately 45 million new shares.

Lihir Gold's acquisition of Niugini Mining would provide Lihir
Gold  with additional cash of some US$52 million, which  Lihir
Gold  would use with the proceeds of the placement  to  reduce
the  amount  and  cost  of its debt finance,  and  to  provide
enhanced  operational flexibility. The transaction would  also
substantially simplify Lihir Gold's shareholder structure, and
provide the shareholders of Niugini Mining with a more  liquid
shareholding in Lihir Gold.

It  is anticipated that the effective date of the Scheme would
be   approximately  three  months  from  the  date   of   this
announcement.

For further information contact:

Media Relations                    Investor Relations
John Hughes                        Peter Jarvis
+ 44 207 753 2331                  + 44 207 753 2401


APPENDIX

The  agreement  between  Lihir  Gold  and  Niugini  Mining  is
conditional upon:

1.    Completion  of the private Placement within 10  business
  days of its announcement raising a minimum of US$90,000,000 on
  the terms announced, unless the period or the amount (or both)
  is waived by NML.

2.    Shareholder  and  regulatory  approvals  to  the  extent
  required by either Niugini Mining or Lihir Gold.

No  prescribed occurrences in either Niugini Mining  or  Lihir
Gold   (as   outlined  in  Section  603  of   the   Australian
Corporations  Law) occurring, other than the  above  mentioned
private Placement