Rio Tinto Ltd
(ASX:RIO) has penned a deal with Ivanhoe Mines that will see Rio manage the $US6 billion Oyu Tolgoi copper-gold mine in Mongolia.
Rio says it will provide a finance package that is expected to move forward the development of Oyu Tolgoi to late 2012.
Rio is Ivanhoe Mines largest stakeholder and says its finance package will include a $US1.8 billion interim loan facility as well as participating in Ivanhoe’s $1.2 billion rights offering.
Rio says it will boost its stake in Ivanhoe to 49 per cent through acquiring 20 million Ivanhoe shares at market prices.
The Oyu Tolgoi project is 66 per cent owned by Ivanhoe Mines and 34 per cent owned by the Government of Mongolia.
Rio Tinto booked a net profit of $7.36 billion in the 2010 financial year.
