Rio Tinto buys more of Ivanhoe
- Publishing Date
- 01 Mar 2010 12:12pm GMT
- Author
- Mining Journal
Rio Tinto plc has spent C$244.7 million (US$232.5 million) to increase its stake in Ivanhoe Mines Ltd by 2.7% to 22.4%, boosting its exposure to Mongolia’s Oyu Tolgoi copper-gold project.
The acquisition is part of an agreement between the two companies in 2008, under which Rio Tinto has the right to life its stake to approximately 44% of Ivanhoe’s common shares. This would be achieved through the exercise of the remaining purchase warrants and the conversion of a US$350 million convertible loan.
“Our further investment in Ivanhoe Mines underlines our confidence in the quality of the world class Oyu Tolgoi deposit and its priority in our project portfolio,” said Rio Tinto’s copper chief executive, Andrew Harding.
Rio Tinto and Ivanhoe Mines are development partners on the project. Production is expected to commence in 2013, with a five year ramp up to full production of 450,000t/y of copper and 330,000oz/y gold.
In 2009, the joint technical committee approved a US$758 million capital budget for 2010, to begin full-scale construction.
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