PT KALTIM PRIMA COAL: 1999 Equity Offer

The two shareholders in PT Kaltim Prima Coal (KPC) - BP Amoco and Rio Tinto - have met their 1999 divestment obligations under the KPC Coal Agreement by offering 30% of their own shares to a variety of Indonesian organizations at the total price of US$175 million. This offer price was determined in accordance with the KPC Coal Agreement, and being the result of a thorough and comprehensive price-finding process by professional independent valuers appointed by KPC and the Government requires no further negotiation.

The agreed price valued 100% of KPC's shares at just over US$583 million and the total investment at around US$970 million when allowance was made for KPC's net debt. The method used to set the price by the independent valuers complies strictly with the KPC Coal Agreement.

To ensure that the potential benefits of an investment in KPC should be made available to a broad range of Indonesians, Rio Tinto and BP Amoco made the offers to a number of Indonesian organizations, including State institutions, pension funds, insurance companies, and mining or mining related companies. In accordance with the KPC Coal Agreement, they each had three months to accept the offer and a further three months to pay and acquire the shares.

The offer to the Government of Indonesia was made to the Department of Mines and Energy on 3 December 1999 and, under the terms of the KPC Coal Agreement, required acceptance within three months. The Director of Coal informed KPC's shareholders on 13 December 1999 that the East Kalimantan Government had expressed interest acquiring a stake in KPC through this offer.

With respect to the offer to the East Kalimantan Government, KPC's shareholders agreed to two extensions to the offer period through to 14 May 2000. The Director General of General Mining has referred a recent request by the Government of East Kalimantan for a further two-month extension to the offer period to the Minister of Mines and Energy.

In addition to the expression of interest from the East Kalimantan Government, two privately owned Indonesian resource companies have expressed an interest in the offer.

Of the other parties offered shares in the 1999 offer all have either declined the offer or no expression of interest was received and all those offers have since expired.

Representatives of KPC's shareholders had a meeting with the East Kalimantan DPRD in Samarinda to discuss the KPC divestment obligation on 19 May 2000. The shareholders provided a summary of the history of the divestment obligation, including the status of the 1999 offer, and confirmed the commitment of each company to comply with the KPC Coal Agreement and the divestment obligation.

KPC and its shareholders continue to be fully committed to fulfilling all the obligations under the KPC Coal Agreement.

For any questions or further details, please contact either:

Phillip Strachan Rio Tinto - Jakarta

Tel. (021) 527 4208

Fax. (021) 527 4230

Or

Peter Vider BP Coal - London

Tel. (44 20) 7579 7886

Fax. (44 20) 7579 7884