Ivanhoe May Consider Selling Stake as Oyu Tolgoi Accord Nears

By Jason Scott
Sept. 23 (Bloomberg) -- Ivanhoe Mines Ltd., seeking to build the Oyu Tolgoi copper and gold project in Mongolia with Rio Tinto Group, may consider selling up to a 9.9 percent stake in the company after being approached by sovereign wealth funds.
Ivanhoe and Rio agreed to change provisions of Rio’s agreement to invest $2.4 billion in Ivanhoe to allow a sale, the Toronto-based company said today in a statement. Any sale won’t affect Rio’s accord to buy a 43.1 percent stake in Ivanhoe, the statement said.
“Several sovereign-wealth funds are among potential investors who have expressed unsolicited interest in participating in Ivanhoe’s growth opportunities,” Ivanhoe President John Macken said in the statement without specifying them. “Ivanhoe Mines and Rio Tinto also have agreed to cooperate in considering potential investments in Ivanhoe by one or more strategic shareholders,” the statement said.
Ivanhoe has tried for more than six years to reach an accord with Mongolia to mine Oyu Tolgoi and benefit from demand in China, the biggest metals buyer. Mongolia’s government would like to sign a final agreement “as soon as possible,” Minister of Mineral Resources and Energy Dashdorj Zorigt said Sept. 9.
Rio, based in London, has also agreed with Ivanhoe to change their accord to allow it to delay the Oct. 27 deadline for the second stage of its planned investment in Ivanhoe. The deadline will be delayed in 30-day increments until “either until the completion of an approved, unconditional investment agreement for Oyu Tolgoi, or until April 27, 2010,” the statement said.
“Rio Tinto is committed to its partnership with Ivanhoe in developing Oyu Tolgoi,” Bret Clayton, Rio’s chief executive of copper and diamonds, said in the statement. “We have made good progress with the government of Mongolia and expect to sign the investment agreement shortly.”
Oyu Tolgoi is about 80 kilometers (50 miles) north of Mongolia’s border with China. Ivanhoe in March 2008 estimated the copper resources in the project at 78.9 billion pounds and the gold resources at 45.2 million ounces. Rio, the world’s third-largest mining company, called Oyu Tolgoi “the world’s largest undeveloped copper-gold resource” when it agreed to buy 10 percent of Ivanhoe in 2006.
To contact the reporters on this story: Jason Scott in Perth at jscott14@bloomberg.net;


Post a Comment

Facebook page

Powered by Blogger.


Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Israel Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Kyrgyzstan Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and US Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive