ID :
203522
Thu, 08/25/2011 - 15:34
Auther :
Shortlink :
http://m.oananews.org//node/203522
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RIO TINTO GROUP REPORTS
Ulaanbaatar, Mongolia /MONTSAME/ The Rio Tinto Group reported on Wednesday, August 24, it had paid 529.5 million Canadian dollars to lift its stake in Ivanhoe Mines by two per cent to 48.5 per cent.
The Ivanhoe which is run by Robert Firedland, said diversified major's ownership was capped at 49 per cent until the current standstill limitation expired in January next year.
The Vancouver-based firm owns 66 per cent of the Oyu Tolgoi copper-gold project in Mongolia, which at $6 billion is one of the biggest mines being built globally, with the East Asian country's government owning the rest. “Subscription reinforces Rio Tinto's commitment to the Oyu Tolgoi project, which is a natural fit with its strategy of focusing on cost competitive, long-life assets with significant growth potential,” Rio Tinto reported in a release.
The Ivanhoe Mines implemented this year a shareholder rights plan that would prevent the bigger firm from increasing its stake even after the agreement expires next year, unless it makes an offer to all shareholders.
The Rio Tinto disputed the plan and the two parties headed to arbitration over the issue. The two companies later agreed that Rio Tinto would become the project operator, though they haven't said whether the dispute over the shareholder rights plan has been settled.
The Oyu Tolgoi mine is expected to produce more than 1.2 billion pounds of copper and 650 000 oz of gold a year in the first ten years of operations, and Friedland said earlier this week the mine would produce copper at negative costs at today's precious metals prices.
The partners started prestripping this month at Oyu Tolgoi's Phase 1 open pit mine, with the project's construction progressing beyond the 33% mark. First production is scheduled for the end of 2012.
B.Khuder
The Ivanhoe which is run by Robert Firedland, said diversified major's ownership was capped at 49 per cent until the current standstill limitation expired in January next year.
The Vancouver-based firm owns 66 per cent of the Oyu Tolgoi copper-gold project in Mongolia, which at $6 billion is one of the biggest mines being built globally, with the East Asian country's government owning the rest. “Subscription reinforces Rio Tinto's commitment to the Oyu Tolgoi project, which is a natural fit with its strategy of focusing on cost competitive, long-life assets with significant growth potential,” Rio Tinto reported in a release.
The Ivanhoe Mines implemented this year a shareholder rights plan that would prevent the bigger firm from increasing its stake even after the agreement expires next year, unless it makes an offer to all shareholders.
The Rio Tinto disputed the plan and the two parties headed to arbitration over the issue. The two companies later agreed that Rio Tinto would become the project operator, though they haven't said whether the dispute over the shareholder rights plan has been settled.
The Oyu Tolgoi mine is expected to produce more than 1.2 billion pounds of copper and 650 000 oz of gold a year in the first ten years of operations, and Friedland said earlier this week the mine would produce copper at negative costs at today's precious metals prices.
The partners started prestripping this month at Oyu Tolgoi's Phase 1 open pit mine, with the project's construction progressing beyond the 33% mark. First production is scheduled for the end of 2012.
B.Khuder
