MONGOLIA - Canadian company Ivanhoe Mines and Rio Tinto, domiciled in London, U.K., have reached an agreement making Rio Tinto the manager of Ivanhoe's Oyu Tolgoi copper-gold mine development. In return, Rio Tinto will provide financing to bring the project into production in 2012. Rio Tinto will also increase its ownership of Ivanhoe to 49% from 35%.
Construction at Oyu Tolgoi (owned 66% Ivanhoe Mines and 34% by the government of Mongolia) is progressing ahead of schedule with first production now forecast to begin in late 2012. Initially, mill throughput will be 100,000 t/d, but by 2017 it will be expanded to 160,000 t/d to treat additional ore from the Hugo North underground mine.
Reserve are 1.4 billion tonnes grading 0.93% Cu and 0.37 g/t Au.
Complete information is posted at www.Ivanhoe-Mines.com.