Comalco announces Short-listed Bidders for Gladstone Co-Generation Power Station.

LONDON--(BUSINESS WIRE)--December 22, 1998--Rio Tinto plc (NYSE: RTP) today announced that Comalco has determined a short list of five bidders for a gas fired co-generation power station at Gladstone, Queensland, Australia. The five selected parties are:

--   CS Energy Limited
--   Edison Mission Energy Holdings Pty Ltd
--   NRG Asia-Pacific Limited
--   Sithe Energies Australia Pty Ltd
--   Stanwell Corporation Limited

The co-generation power station will form an integral part of Comalco's Gladstone alumina refinery project. Each party will be bidding for the right to build, own and operate the co-generation power station to provide steam and electricity to the proposed alumina refinery using Papua New Guinea gas. Comalco has the right to retain part ownership in the power station.

Mr Terry Palmer, Comalco's Chief Executive said, "There are two crucial matters to be finalised in relation to Gladstone before the bidding process can proceed with the five selected parties. Firstly, the inclusion of Hides Gas into the gas reserves available for the Papua New Guinea gas project. Secondly, an agreement on gas price with the Papua New Guinea project developers."

Mr Palmer emphasised that the short-listing of power station bidders for Gladstone did not mean that a final site had been selected for the refinery project. He said, "The alumina refinery will be located at either Gladstone, Queensland or Sarawak, Malaysia. This bidding process relates only to the Queensland option.

"I hope that the various outstanding matters in relation to both Gladstone and Sarawak can be resolved quickly so that a decision on a preferred site can be made. Then we can proceed with final feasibility to determine whether the refinery makes sound economic sense. Only then can the final investment decisions be made."