Chinese aluminum company seeking stake in Ivanhoe or its Mongolian mine

By: Ross Marowits, The Canadian Press

MONTREAL - Rio Tinto says it is in talks with a Chinese aluminum company about buying a minority equity stake in Ivanhoe Mines Ltd., or a direct interest in Ivanhoe's signature copper-gold project in Mongolia.
In a filing Wednesday with U.S. regulators, the London-based global mining giant said it continues to talk with the Aluminum Corporation of China (Chinalco) — a large Rio Tinto shareholder — about its ownership interests.
"If any arrangement is agreed, it may be a bipartite or tripartite arrangement with (Ivanhoe) and/or Rio Tinto," it said.
Any such arrangement may require approval from Ivanhoe, Rio Tinto and the Mongolian government.
Rio last year walked away from Chinalco's desire to invest US$19.5 billion in the company after shareholders balked at the infusion designed to reduce Rio's debt.
The company said it has also had discussions about the Mongolian project with "numerous parties," including the European Bank for Reconstruction and Development and the World Bank's International Finance Corporation.
Ivanhoe is working with both organizations to evaluate a major financing package for construction of the planned $4.6-billion Oyu Tolgoi mining complex.
"Rio Tinto intends to continue its discussions," it stated.
Rio Tinto (NYSE:RTP) has called the Mongolia project the world's largest untapped copper and gold resource. It announced last week that it was increasing its stake in Ivanhoe Mines Ltd. (TSX:IVN) by 7.3 per cent to almost 30 per cent as Ivanhoe continues to develop the Oyu Tolgoi project.
It will increase its stake by exercising all of its series A warrants, which entitle it to acquire just over 46 million Ivanhoe shares at US$8.54 per share, for total consideration of approximately US$393 million.
Rio Tinto said it is also continuing to talk with Ivanhoe about the potential conversion of the equity stake in Ivanhoe of a subsidiary, Rio Tinto International Holdings Ltd., into a direct ownership interest in the Mongolian project.
Rio Tinto and Ivanhoe are development partners for the Oyu Tolgoi project. Production is expected to commence in 2013, with a five-year ramp up to full production.
Ivanhoe declined to comment on Rio Tinto's filing or its discussions.
But in May, deputy chairman Peter Meredith told a London conference that the project would likely have another partner and that it makes sense for Chinese interests to study investment in the mine.
After the completion of the exercise of the series A warrants, Rio Tinto will own 144.66 million Ivanhoe shares. If Rio Tinto were to exercise all of its remaining share purchase warrants and convert its US$350-million loan into shares, it would own approximately 267.8 million shares of Ivanhoe representing some 44 per cent of the company.
Rio Tinto is a leading international mining group headquartered in the United Kingdom, combining Rio Tinto plc, a London- and NYSE-listed company, and Rio Tinto Ltd., which is listed on the Australian Securities Exchange.

Vancouver-based Ivanhoe is an international mineral exploration and development company. Besides its stake in the Mongolian project, it has a 57 per cent interest in Mongolian coal miner SouthGobi Resources (TSX:SGQ).

It also has an 81 per cent interest in Ivanhoe Australia, an exploration and development company, and a 50 per cent interest in Altynalmas Gold Ltd., a company developing the Kyzyl gold project in Kazakhstan.

Its shares closed up 70 cents, or 5.36 per cent at $13.76 in trading Wednesday on the Toronto Stock Exchange.



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