Ivanhoe Approves $2.3-Billion for Mongolian Mine, The Canadian Press
Dec 13, 2010. Ivanhoe Mines (IVN-T24.730.492.02%) has approved a $2.3-billion (U.S.) capital budget for continuing construction at its Oyu Tolgoi copper and gold mine in Mongolia.
The Vancouver-based miner says it expects next year to see peak construction on the first phase of the mine, which employs 3,000 Mongolians near the country's border with China.
Ivanhoe holds a 66-per-cent stake in the Oyu Tolgoi copper and gold mine, while the Mongolian government holds the remaining 34 per cent.
Last week, Rio Tinto (RIO-N71.200.931.32%) and Ivanhoe reached an agreement that will result in the international mining giant providing billions of dollars in financing and assuming management of Oyu Tolgoi.
The mining companies had been in a fight over Ivanhoe's institution of a so-called “poison pill” plan to protect against a hostile or creeping takeover.
Rio Tinto has committed to invest roughly $1.3-billion in Ivanhoe in the coming months through a rights offering and the exercise of warrants.