Work Suspended at Diavik Diamonds Project Site

Rio Tinto PLC
20 January 2000


The following press release was issued today in Canada by
Diavik Diamond Mines Inc.


DIAVIK DIAMONDS PROJECT

Diavik Diamond Mines Inc. (DDMI) announced today that in light
of the decision by the Federal Government's Department of
Indian Affairs and Northern Development (DIAND) not to issue
an interim land use permit for activities in preparation for
the Diavik Diamonds Project, DDMI has suspended all work
activities at the project site. Effective immediately, DDMI is
placing all equipment and facilities on care and maintenance,
and will begin to repatriate all non-essential employees from
the site.

The impact of these developments on the project is presently
indeterminate, but given the very short winter road window
available to transport materials to the Diavik site, the
project is at substantial risk of being delayed by at least
one year.

Following the Federal Government's approval of the project's
environmental review on November 3, 1999, DDMI approached
DIAND for the purposes of amending its existing land use
permit to allow preparation of lay-down areas for receipt of
fuel, materials and equipment to be transported to site on the
2000 winter road. Staging of these materials would allow the
company to be in a position to commence construction
activities in the second quarter 2000 following the expected
completion of the regulatory phase which will permit the
project to proceed following approval by the investors.

DDMI continues to be of the opinion that the interim
activities planned for this current period could be conducted
within its existing land use permit framework. The activities
in question include, among other things, placement of
approximately 40,000 cubic metres of rock and gravel fill for
the extension of the Diavik's existing temporary camp and fuel
storage facilities. By way of comparison, under existing land
use permits, DDMI has placed more than 70,000 cubic metres of
rock and gravel fill over the past five years in erecting its
existing facilities and 1300-foot airstrip at the Diavik site.

DDMI will continue to negotiate in good faith with DIAND to
conclude the agreements and regulatory approvals required for
the project to proceed. DDMI is encouraged that Natural
Resources Canada has recently issued the blasting permit
required for the project activities in this interim period.
DDMI remains hopeful that a solution can be found through
continuing discussions with DIAND that will permit the company
to re-establish its workforce at the project site to allow it
to fully utilize the 2000 winter road as planned.

For further information contact:

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



Note to Editors:

The Diavik Diamonds Project is an unincorporated joint venture
between DDMI holding 60% and Aber Diamond Mines Ltd. holding
40%.  DDMI is a wholly owned subsidiary of Rio Tinto.  The
Diavik Diamonds Project is a Can.$1.3 billion plan to mine
diamonds over a 20-year mine life from four pipes.  The recent
Federal Government approval of the mining project concluded
that the operation would generate no significant adverse
environmental effects.