Rio Tinto Alcan Lannemezan in partnership for the economic development of the region

Rio Tinto Alcan today announced the signing of a provisional land sales agreement with Knauf Insulation, a company specialising in insulation materials such as glasswool, for land at its Lannemezan site in France. This agreement allows Knauf Insulation to officially take possession of a portion of the Rio Tinto Alcan Lannemezan site for construction of a new plant. The plant is expected to create more than 130 jobs and is planned to begin operation in late 2008.

"The signing of this agreement represents the fulfilment of our stated commitment to sustainable economic development of the Lannemezan Plateau subsequent to the 2005 announcement regarding the closure of the site," said Jean-Philippe Puig, president, Rio Tinto Alcan Primary Metal, Europe and Africa. "We are very proud of this agreement that is the result of sustained joint effort with the local community based on a shared vision and objectives," Puig added.

The agreement was made possible through a genuine partnership involving all levels of government (national, regional, departmental and municipal) as well as other regional stakeholders such as Midi-Pyrenees Expansion (the regional economic development agency) and the Departmental Economic Development Board.

"Knauf Insulation has found particularly attractive conditions in Lannemezan for the establishment of its operations as a result of this partnership," added Mark Leverton, director, Southwest Europe, Knauf Insulation.

In keeping with its commitments to communities and sustainability, Rio Tinto Alcan is pursuing the regional industrial development process launched in Lannemezan at the beginning of 2005.

"Rio Tinto Alcan wants to contribute to maintaining economic activity and sustainable prosperity by supporting the economic development initiatives of entrepreneurs, particularly those involving sectors where the region has a competitive advantage." Mr. Puig noted.

Rio Tinto Alcan's development efforts in Lannemezan include the promotion of the site and the region as well as seeking out, assessing and supporting new projects. Rio Tinto Alcan and the Lannemezan municipal corporation continue to collaborate on studies and discussions regarding the development of industrial sites. As a result, Rio Tinto Alcan has already set up operations of its Carbone Savoie subsidiary on the site.

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 and production forecasts), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Rio Tinto, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such forward-looking statements are based on numerous assumptions regarding Rio Tinto's present and future business strategies and the environment in which Rio Tinto will operate in the future. Among the important factors that could cause Rio Tinto's actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others, levels of actual production during any period, levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation and such other risk factors identified in Rio Tinto's most recent Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the "SEC") or Form 6-Ks furnished to the SEC. Forward-looking statements should, therefore, be construed in light of such risk factors and undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this announcement. Rio Tinto expressly disclaims any obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers (the "Takeover Code"), the UK Listing Rules, the Disclosure and Transparency Rules of the Financial Services Authority and the Listing Rules of the Australian Securities Exchange) to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in Rio Tinto's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Nothing in this announcement should be interpreted to mean that future earnings per share of Rio Tinto plc or Rio Tinto Limited will necessarily match or exceed its historical published earnings per share.

Subject to the requirements of the Takeover Code, none of Rio Tinto, any of its officers or any person named in this announcement with their consent or any person involved in the preparation of this announcement makes any representation or warranty (either express or implied) or gives any assurance that the implied values, anticipated results, performance or achievements expressed or implied in forward-looking statements contained in this announcement will be achieved.

For further information, please contact:

Rio Tinto Alcan Media Relations, Canada
Stefano Bertolli
Tel.: +1-514-848-8151
stefano.bertolli@riotinto.com

Rio Tinto Alcan Media Relations, Paris
Chrystele Ivins
Tel.: +33-1-57-00-24-18
chrystele.ivins@riotinto.com

Email: questions@riotinto.com

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