Rio Tinto approves US$247 million investment to upgrade Pilbara mining town

Rio Tinto has approved the investment of US$247 million (Rio Tinto share US$131 million) in the Pilbara town of Pannawonica to support the new Robe Valley iron ore mine of Mesa A/Warramboo, which is currently under construction.

The infrastructure upgrade, subject to government and external approvals, would increase the amount and standard of accommodation available to sustain mining in the Robe Valley.

The US$247 million will provide for:

• refurbishment of 238 houses
• construction of 10 new houses
• upgrading of airstrip for jet services
• new service station and workshop
• a mining operations village
• a renovated meals centre
• upgrades to town buildings, infrastructure and landscaping
• a construction village

Rio Tinto chief executive Iron Ore Sam Walsh said: "it was important to invest in the Pannawonica community in parallel with Rio Tinto's major investment in a new mine in the Robe Valley".

"Pannawonica is a unique community in the Pilbara which is wholly supported by our mining operations. The community has been boosted by the news late last year of the development of the Mesa A project and by today's announcement of the co-commitment to substantial re-investment in the township," Mr Walsh said.

In November 2007 Rio Tinto committed US$901 million (Rio Tinto share US$478 million) to develop the Mesa A/Warramboo mine, about 50 kilometres from Pannawonica.

Mesa A/Warramboo will have an initial production of 20 million tonnes per annum, increasing to 25 million tonnes by 2011 (Rio Tinto attributable share 53 per cent) and it will sustain production of Robe Valley pisolite ore at 32 million tonnes per annum over the next decade.

Pannawonica, which is 1,430 kilometres north of Perth, was built in 1970 by Robe River Mining. It has a population of about 1,000 and is the only closed mining town remaining in the Pilbara. Rio Tinto provides all infrastructure, housing and services in the town.

About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.

Forward-Looking Statements
This announcement includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Rio Tinto's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Rio Tinto's products, production forecasts and reserve and resource positions), are forward-looking statements.

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