Canadian Mining Journal

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COPPER-GOLD DEVELOPMENT: Ivanhoe, Rio Tinto sign Oyu Tolgoi deal with Mongolian government

MONGOLIA — After years of wrangling and uncertainty, the Mongolian government has signed a long-term inv...



MONGOLIA — After years of wrangling and uncertainty, the Mongolian government has signed a long-term investment agreement allowing Ivanhoe Mines and Rio Tinto to build and operate the Oyu Tolgoi copper-gold project in the South Gobi Region.

 

The agreement creates a partnership between the Mongolian government and Ivanhoe Mines, which will retain a 66% interest in Oyu Tolgoi. The government will hold a 34% interest though Ivanhoe Mines Mongolia, which is the licence holder.

 

Global miner Rio Tinto, which joined Ivanhoe Mines as a strategic partner three years ago, presently holds a 9.9% interest in Ivanhoe Mines. Under the current financing agreement with Ivanhoe, Rio Tinto may increase its stake to up to 43.1%, with a right to go to 46.6% through purchases on the open market during the next two years.

 

Ivanhoe intends to update its integrated development plan in coming weeks. Check at www.Ivanhoe-Mines.com for the update.