Quarterly Producton Report - Part 2

RIO TINTO PLC 27 October 1999 Part 2 Rio Tinto Share of Production 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS Interest 1998 1998 1999 1999 1999 1998 1999 COPPER Mine production ('000 tonnes) Kennecott Utah Copper 100% 83.2 84.4 79.4 68.9 67.2 213.8 215.6 Escondida (a) 30% 64.7 60.4 74.6 77.8 75.8 198.0 228.3 Grasberg - FCX (b) 13% 21.9 24.8 20.9 21.2 21.7 54.1 63.8 Grasberg - Joint Venture (b) 40% 39.3 40.5 19.9 24.8 23.2 95.7 67.9 Neves Corvo 49% 13.9 14.3 13.0 12.2 12.9 41.8 38.0 Palabora (c) 46% 16.2 17.1 12.3 9.8 12.9 43.6 35.0 Rio Tinto total mine production 239.2 241.5 220.1 214.7 213.7 647.0 648.5 Refined production ('000 tonnes) Kennecott Utah Copper 100% 61.2 70.8 53.9 71.9 69.2 168.0 195.1 Palabora (c) 46% 13.6 12.8 11.8 9.6 11.3 32.3 32.6 Atlantic Copper (b) 15% 8.7 9.2 9.2 9.2 8.8 24.5 27.2 Escondida 30% 0.1 1.6 8.9 9.7 10.4 7.1 29.0 Rio Tinto total refined production 83.7 94.4 83.8 100.4 99.7 231.9 283.9 At the end of the quarter, the Group had provisionally priced sales of copper in concentrates and intermediate product as follows: Million lbs of payable copper Kennecott 100% 3 3 14 0 0 3 0 Escondida 30% 121 123 126 105 96 121 96 Grasberg (b) 13% 43 60 39 59 40 43 40 Neves Corvo 49% 13 13 9 9 9 13 9 Rio Tinto total 180 199 188 173 145 180 145 Priced at US c/lb average 75 67 63 75 81 75 81 GOLD Mine production ('000 ounces) Kennecott Utah Copper 100% 100 100 96 87 95 266 278 Grasberg - FCX (b) 13% 64 103 76 77 83 166 236 Grasberg - Joint Venture (b) 40% 135 254 148 150 140 371 437 Kelian 90% 114 107 93 91 111 307 294 Ridgeway 100% 23 22 20 23 26 77 69 Barneys Canyon 100% 25 29 18 26 25 54 69 Morro do Ouro 51% 22 22 21 22 26 70 69 Rawhide 51% 16 16 13 15 16 47 44 Peak 100% 27 22 37 32 30 90 100 Cortez/Pipeline 40% 162 150 126 135 143 305 404 Escondida 30% 11 11 11 12 12 34 35 Rio Tinto Zimbabwe 56% 11 11 10 10 10 31 30 Lihir 17% 22 22 22 25 32 67 79 Others: - 17 17 19 17 19 46 55 Rio Tinto total mine production 750 886 712 720 767 1,932 2,199 Refined production ('000 ounces) Kennecott Utah Copper 100% 73 70 82 83 86 220 251 IRON ORE Production ('000 tonnes) Hamersley 100% 10,644 11,134 10,002 11,437 11,778 34,446 33,217 Channar 60% 1,371 1,818 1,322 1,268 1,772 4,235 4,361 Corumba (d) 100% 247 213 211 227 235 743 673 Rio Tinto total mine production 12,262 13,165 11,535 12,932 13,785 39,424 38,251 Mine production figures for metals refer to the total quantity of metal produced in concentrates or dore bullion irrespective of whether these products are then refined onsite, except for the data for iron ore which represent production of saleable quantities of ore. See footnotes below PRINCIPAL COMMODITIES (continued) Rio Tinto Share of Production Coal 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS Interest Type 1998 1998 1999 1999 1999 1998 COAL US coal operations ('000 tonnes) Kennecott Energy Cordero Rojo 100% S 8,677 9,240 9,586 10,369 10,352 24,336 30,307 Antelope 100% S 4,625 4,993 4,590 5,183 5,548 12,624 15,321 Spring Creek 100% S 2,329 3,072 2,500 2,490 2,490 7,191 7,480 Decker 50% S 1,220 1,129 1,162 988 1,253 3,650 3,403 Colowyo (e) 100% S 1,434 1,344 1,155 1,284 1,197 3,939 3,636 Jacobs Ranch (f) 100% S 5,361 7,265 6,189 6,750 6,416 5,361 19,355 Total US coal 23,646 27,043 25,182 27,064 27,256 57,100 79,502 Australian coal operations ('000 tonnes) Pacific Coal: Blair Athol (g) 71% S 1,591 1,426 1,999 2,011 2,088 4,620 6,098 Kestrel Coal (h) 80% S - - - 70 183 - 253 80% M - - - 96 503 - 599 Tarong Coal 100% S 1,316 1,219 1,155 1,543 1,371 3,811 4,069 Coal & Allied Industries: Hunter Valley Operations (i) 71% S 1,411 1,262 1,121 1,076 1,257 4,060 3,454 71% M 478 673 556 458 661 1,498 1,675 Mount Thorley 57% S&M 679 756 734 672 684 1,460 2,090 Vickery (j) 71% S - - - - - 286 - Total Australian coal 5,474 5,337 5,565 5,926 6,747 15,735 18,238 Indonesian coal operations ('000 tonnes) Kaltim Prima Coal (k) 50% S 1,936 1,952 1,776 1,582 2,018 5,412 5,376 South American coal operations ('000 tonnes) Carbones del Cerrejon 33% S 302 205 93 102 97 842 292 Copelmi (l) 0% S - - - - - 105 - Total South American coal operations 302 205 93 102 97 947 292 Rio Tinto total coal production 31,357 34,537 32,616 34,674 36,118 79,194 103,408 ALUMINIUM / BAUXITE Bauxite ('000 tonnes) Weipa (m) 72% 1,680 1,868 2,068 1,934 2,013 4,448 6,015 Boke (m) 3% 75 109 76 75 38 182 189 Rio Tinto total bauxite production 1,755 1,977 2,143 2,010 2,051 4,630 6,205 Aluminium ('000 tonnes) Comalco (m) 72% 112.4 114.3 115.9 121.8 124.1 327.0 361.8 Anglesey 51% 17.1 17.4 17.5 17.4 17.3 51.6 52.2 Rio Tinto total aluminium production 129.6 131.7 133.4 139.3 141.4 378.6 414.0 BORATES Borates ('000 tonnes B2O3 content) Rio Tinto total borate production 100% 162 132 146 142 140 455 428 TITANIUM DIOXIDE FEEDSTOCK Production ('000 tonnes) Rio Tinto Iron & Titanium 100% 399 394 377 354 347 1,147 1,077 Key to coal type: S = Steam/ thermal coal, M = Metallurgical/coking coal See footnotes below OTHER METALS & MINERALS Rio Tinto Share of Production 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS Interest 1998 1998 1999 1999 1999 1998 1999 DIAMONDS Production ('000 carats) Argyle 60% 7,451 5,406 4,244 4,337 4,720 18,977 13,300 LEAD Mine production ('000 tonnes) Various - 5.2 5.6 5.3 5.4 5.4 15.4 16.1 MOLYBDENUM Mine production ('000 tonnes) Kennecott Utah Copper 100% 1.3 1.9 2.1 1.4 1.3 4.4 4.8 NICKEL Nickel in matte (tonnes) Fortaleza 100% 1,806 1,923 2,171 1,726 2,620 2,747 6,517 Toll refined metal production (tonnes) Rio Tinto Zimbabwe - Empress 56% 957 999 926 1,036 1,011 2,609 2,973 SALT Production ('000 tonnes) Dampier 65% 809 697 714 941 835 2,283 2,490 SILVER Mine production ('000 ounces) Kennecott Utah Copper 100% 1,156 1,140 1,109 905 959 3,107 2,972 Greens Creek 70% 2,091 1,561 1,547 1,954 1,810 5,115 5,312 Grasberg - FCX (b) 13% 132 196 121 148 147 327 416 Grasberg - Joint Venture (b) 40% 176 370 50 61 194 421 304 Others: - 1,037 945 960 927 989 3,051 2,876 Rio Tinto total 4,592 4,212 3,787 3,994 4,099 12,021 11,880 Refined production ('000 ounces) Kennecott Utah Copper 100% 742 718 1,202 1,154 1,160 1,892 3,516 TALC Production ('000 tonnes) Luzenac Group 99.9% 298 289 310 325 321 905 955 TIN Mine production (tonnes) Neves Corvo 49% 335 283 219 241 448 1,157 908 Mine production figures for metals refer to the total quantity of metal produced in concentrates or dore bullion irrespective of whether these products are then refined on site. The nickel in matte production reflects the contained tonnage of nickel. See footnotes below. OTHER METALS & MINERALS (continued) Rio Tinto Share of Production 3Q 4Q 1Q 2Q 3Q 9 MTHS 9 MTHS Interest 1998 1998 1999 1999 1999 1998 1999 URANIUM Production (tonnes U3O8) Rossing 69% 592 470 576 549 558 1,764 1,682 Palabora (c) 46% 8 8 10 11 10 24 31 Rio Tinto total uranium production 600 478 587 559 567 1,787 1,713 ZINC Mine production ('000 tonnes) Various - 19.3 19.1 19.4 18.9 19.2 51.7 57.4 Refined production ('000 tonnes) Norzink 50% 17.5 17.2 18.5 17.5 18.2 51.8 54.2 Others: - 3.5 3.3 2.9 3.1 3.5 10.0 9.5 Rio Tinto total refined zinc production 21.0 20.5 21.4 20.6 21.6 61.8 63.7 (a) Copper contained in oxide and sulphide ores has been included since the fourth quarter of 1998 when the new oxide plant was commissioned. (b) Rio Tinto's initial interests in the Grasberg mine and in the Atlantic Copper smelter were acquired in 1995 by virtue of an acquisition of shares in Freeport McMoRan Copper & Gold (FCX). As a result of FCX share buy-backs, Rio Tinto's interest in FCX has changed and, as of 30 September 1999, Rio Tinto had, by virtue of its FCX shareholding, a 12.6% share in Grasberg and a 14.6% share in Atlantic Copper. From 1 January 1998, under the Joint Venture agreement with FCX, Rio Tinto is entitled to 40% of additional material mined as a consequence of the expansion of the Grasberg facilities. The additional entitlement is shown separately in the above tables. (c) Rio Tinto increased its interest in Palabora Mining Company from 38.9% to 46.5% on 10 June 1998. Rio Tinto's share of production has been calculated using the weighted average of Rio Tinto's interest over the relevant periods. (d) Rio Tinto increased its interest in the Corumba mine, Brazil, from 80% to 100% during June 1999. Rio Tinto's share of production has been increased to 100% from 1 January 1999, in accordance with the purchase agreement. (e) Kennecott Energy has a partnership interest in the Colowyo mine, but as it is responsible under a management agreement for the operation of the mine, all of Colowyo's output is included in Rio Tinto's share of production. (f) Rio Tinto acquired the Jacobs Ranch mine in Wyoming, US, with effect from 23 July 1998. (g) On 10 January 1999, Rio Tinto increased its beneficial interest in the Blair Athol mine from 57.2% to 71.2%. (h) Rio Tinto acquired Kestrel Coal, formerly Gordonstone, in February 1999 and production commenced in June 1999. (i) Coal & Allied has purchased the Rio Tinto Group's coal interests in New South Wales which included its 60% interest in the Howick mine. Coal & Allied has also purchased Mitsubishi Development Pty Ltd's 40% interest in the Howick mine. These transactions took effect from 1 July 1999. The restructuring of Coal and Allied's shareholding leaves Rio Tinto with a 70.88% interest. Rio Tinto's share of production for quarters prior to 1 July 1999 is reported in line with the pre-merger shareholdings. (j) The Vickery mine was closed on 31 May 1998. The last stockpiled coal was sold in the first quarter of 1999. (k) Rio Tinto has a 50% share in Kaltim Prima and, under the terms of its Coal Agreement, the Indonesian Government is entitled to a 13.5% share of Kaltim Prima's production. Rio Tinto's share of production shown is before deduction of the Government share. (l) As a consequence of a restructuring, with effect from 1 April 1998, Rio Tinto ceased to have any direct interest in the production from Copelmi's Recreio mine. (m) Production figures derived for Comalco reflect Comalco's share of primary aluminium production from its wholly owned or managed smelters. Rio Tinto increased its interest in Comalco from 67.0% to 70.4% during 1998. During the first half of 1999, Rio Tinto increased its interest in Comalco from 70.4% to 72.4%. Rio Tinto's share of production has been calculated using the weighted average of Rio Tinto's interest over the relevant periods. More to follow MSCKLMZGVNRLLMG

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