Rio Tinto holdings in Ivanhoe Mines rise a bit more

BCM Mongolia Newswire Highlights

Rio Tinto (LSE: RIO) paid CAD 529.5 million to increase its stake in Ivanhoe Mines (TSX:IVN). Its holdings rose by 2 percent to a total 48.5 percent of the company operating at Oyu Tolgoi, but the firm is unable to claim anymore. Currently, Ivanhoe policies are preventing Rio Tinto from buying up any more of the company.

Due to a shareholders rights plan preventing the bigger firm from increasing its stake, Rio Tinto is unable to claim more than 49 percent until a standstill limitation expires in January 2012. Ivanhoe implemented further policies that prevent Rio Tinto from buying more of the company up unless it makes an offer to all shareholders. This move ended in dispute between the companies, resulting in the decision to place Rio Tinto as the project operator. However, it is unclear if the dispute over the shareholders rights has ended.

Oyu Tolgoi is expected to produce more than 1.2 billion pounds of copper and 650,000 ounces of gold a year its first ten years of operations. The partners began pre-stripping in August with nearly a third of the project's construction finished.

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