CORRECT: Chinalco Mulls Purchasing Direct Minority Stake In Oyu Tolgoi

7th Jul 2010 00:27

("Chinalco Mulls Purchasing Direct Minority Stake In Oyu Tolgoi," published at 1804 GMT, incorrectly stated that the SEC filing was made by Ivanhoe.) By Alex MacDonald Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Aluminum Corp. of China (ACH, 2600.HK) is considering purchasing a direct minority stake in one of the world's largest undeveloped gold-and-copper mine deposits, according to project partner Rio Tinto PLC (RTP, RIO.LN). Canada's Ivanhoe Mines Ltd (IVN) owns a 66% stake in the Mongolian Oyu Tolgoi project and has previously expressed interest in selling a minority stake to a second strategic investor. Rio Tinto PLC (RTP, RIO.LN) owns an indirect interest in the project through its 29.6% equity stake in Ivanhoe Mines. Aluminum Corp., also known as Chinalco, "has indicated an interest" in acquiring a minority equity stake in Ivanhoe or a minority interest in the Oyu Tolgoi project, Rio Tinto said in a U.S. Securities and Exchange regulatory filing Wednesday. "If any arrangement is agreed, it may be a bipartite or tripartite arrangement with" Ivanhoe and/or Rio Tinto, Rio Tinto added, saying the government of Mongolia would have to support any deal. Rio Tinto is also discussing plans with Ivanhoe to convert its indirect equity stake in the project "into a direct ownership interest," Rio Tinto added. Rio Tinto paid $393 million on June 29 to exercise warrants that increased the Anglo-Australian's stake in Ivanhoe to 29.6% from 22.4%. Rio still has enough warrants to increase its stake up to 44%. Rio Tinto has also had discussions about the project with numerous parties including the European Bank for Reconstruction and Development and The International Finance Corporation. Rio Tinto intends to continue its discussions with Ivanhoe, Chinalco, the EBRD, the IFC and other third parties, including the government of Mongolia, which owns the remaining 34% of the project, the filing said. An Ivanhoe spokesman declined to comment on the filing but referred to a May 21 statement that said that talks on financing were ongoing. -By Alex MacDonald, Dow Jones Newswires; 44 20 7842 9328; [email protected] (END) Dow Jones Newswires July 07, 2010 19:27 ET (23:27 GMT)