Ivanhoe says Oyu Tolgoi continues to progress

TORONTO, March 28 (Reuters) - Ivanhoe Mines Ltd (IVN.TO: Quote) said on Monday that key parts of its Oyu Tolgoi copper-gold-silver project in Mongolia are currently ahead of schedule.

The massive project, which Ivanhoe is being developing in partnership with Anglo-Australian miner Rio Tinto (RIO.AX: Quote) (RIO.L: Quote), is expected to begin commercial production in the first half of 2013.

Rio Tinto currently owns a 42.1 percent stake in Ivanhoe and can gradually raise this stake up to 49 percent. The Oyu Tolgoi project itself is 66 percent owned by Ivanhoe with the government of Mongolia owning the remainder.

Ivanhoe estimates capital expenditures on the project will be about $2.3 billion in 2011. Ivanhoe said as of March 28, its consolidated cash position was about $1.9 billion. (Reporting by Euan Rocha, editing by Gerald E. McCormick)

Source:Reuters