Ivanhoe Mines Ltd IVN:CA and Rio Tinto PLC RIO have reached a comprehensive agreement to provide funding to complete the construction of the first phase of the Oyu Tolgoi copper-gold complex in southern Mongolia. The funding measures, including an interim funding facility from Rio Tinto and cash on hand available to Ivanhoe Mines, could increase to $6.5 billion the pool of development capital available to Ivanhoe to bring Oyu Tolgoi into full production and also to finance associated investments. Rio Tinto has committed to participate directly in several funding measures that could generate up to $4.4 billion of the potential $6.5 billion.
Ivanhoe Executive Chairman/CEO Robert Friedland commented, “The mutually beneficial evolution and expansion of the scope of Ivanhoe’s four-year relationship with Rio Tinto comes at a pivotal time in the development of Oyu Tolgoi. Successful completion of all of the measures that we have identified will give us more than sufficient capital to begin initial production at Oyu Tolgoi in 2012.”
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by Ted Niles