PERTH (miningweekly.com) − Diversified miner Rio Tinto has acquired an additional 3.7-million shares in Ivanhoe Mines, increasing its shareholding in the copper developer to 49%.

Rio Tinto paid C$73-million for the 0.5% additional stake.

The acquisition was made in compliance with existing contractual arrangements between Rio Tinto and Ivanhoe Mines that permits share purchases in certain circumstances and subject to certain limits.

Under the terms of these agreements and subject to certain exceptions, Rio Tinto’s current maximum permitted shareholding in Ivanhoe Mines is 49%.

Ivanhoe Mines is developing the massive Oyu Tolgoi project, in Mongolia, which was 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 operation, with the mine producing around 1.7-billion pounds of copper and one-million ounces of gold at its peak, in year seven.

The first openpit phase is set to start commercial production in 2013, with underground production set to arrive two years later.

Ivanhoe Mines owns two-thirds of the Oyu Tolgoi project, with the Mongolian government owning the remaining share.

Weekend news reports cited Mongolia’s Mineral Resources and Energy Minister Dashdorj Zorigt as saying that the government wanted to accelerate the timeframe in which it could increase its 34% stake to 50%.

Ivanhoe stated that the investment agreement signed in 2009 was a legally binding contact and urged Mongolia to stick to the accord.

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