HomeBase MetalsRio Tinto increases holding in Ivanhoe

Rio Tinto increases holding in Ivanhoe

The Oyu Tolgoi
copper-gold project
in Mongolia
London, England — MININGREVIEW.COM — 14 October 2009 – Leading international mining group Rio Tinto has confirmed that it has given notice to complete the second tranche of its investment in Ivanhoe Mines Limited “’ an international mining company with operations focused in the Asia Pacific region.

In a media release issued here, Rio Tinto explained that this action would increase its holding from 9.9 %to 19.7%. It said Tranche 2 consisted of 46.3 million shares at a subscription price of US$8.38, for a total consideration of US$388 million (R3.1 billion).

The announcement follows the signing last week of an investment agreement with the government of Mongolia for the development of the Oyu Tolgoi copper-gold complex in Mongolia’s South Gobi region, which is expected to start production in 2013.

Rio Tinto Copper and Diamonds Group chief executive Bret Clayton commented: “I am pleased to confirm Rio Tinto’s decision to increase its investment in Ivanhoe by exercising Tranche 2. This will allow us to work with the government of Mongolia to progress the development of Oyu Tolgoi as quickly as possible.”

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc “’ a London and NYSE listed company “’ and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

The company’s major products are aluminium, copper, diamonds, coal, uranium, gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Its activities span the world, but are strongly represented in Australia and North America, with significant businesses in South America, Asia, Europe and southern Africa.