Mongolia Business and Mongolian Daily Business News

Proceeds to be used by Ivanhoe to acquire critical mining and milling equipment for the Oyu Tolgoi copper-gold complex in Mongolia

LONDON, ENGLAND — Robert Friedland, Executive Chairman of Ivanhoe Mines, and John Macken, President and Chief Executive Officer, announced today that the company has entered into an agreement to issue 15 million common shares to Rio Tinto at CDN$16.31 per share, for net proceeds of CDN$244.7 million (US$232.4 million*).

Ivanhoe Mines will use the proceeds to purchase from Rio Tinto key mining and milling equipment to be installed during the construction of the Oyu Tolgoi copper-gold mining complex in Mongolia.

The equipment includes principal components for the 100,000-tonne-per-day Oyu Tolgoi phase-one copper-gold concentrator, including two large, 38-foot-diameter, semi-autogenous grinding (SAG) mills, four ball mills, re-grind mills, crushers, motors, gearless drives, conveyors and flotation cells. Also included is the hoist and major components for the sinking of Shaft #2 — the 10-metre-diameter, main production shaft for the underground block-cave mine at the Hugo North Deposit. Read the rest of this entry »

Mining is the primary industry of the Mongolian economy and lets see what is expected to accomplish in 2010.

Oyu Tolgoi project will invest in construction, worth of $758 million

John Macken, the General Director of Ivanhoe Mines, reported that it adopted construction budget of $758 million.

Work in 2010 is planned to include:

• • Resumption of the sinking of the 10-metre-diameter Shaft #2, which will be used to hoist ore to the surface from the deep, underground, copper-gold-rich Hugo Dummett Deposit.

• •Construction of a 97-metre-tall (approximately 31 storeys), reinforced-concrete headframe for Shaft #2.

• Pouring the concrete foundation for the 100,000-tonne-per-day concentrator and deliveries of building materials for the concentrator and infrastructure. Read the rest of this entry »

Oyu Tolgoi Joint Technical Committee of Rio Tinto and IMMI approved the total investment of 2010 as $758 million. This budget is planned for the following works:

• Resumption of the sinking of the 10-metre-diameter Shaft #2, which will be used to hoist ore to the surface from the deep, underground, copper-gold-rich Hugo Dummett Deposit.
• Construction of a 97-metre-tall (approximately 31 storeys), reinforced-concrete head frame for Shaft #2.
• Pouring the concrete foundation for the 100,000-tonne-per-day concentrator and deliveries of building materials for the concentrator and infrastructure.
• Installation of a 20-megawatt power station and 35-kilovolt distribution system. Read the rest of this entry »

Ivanhoe Mines, through its SouthGobi Energy Resources Ltd, wants to supply 1 percent of China’s (largest coal consumer country in the world) coal supply within 10 years, Chairman Robert Friedland said yesterday in an interview in Beijing according to Bloomberg. SouthGobi’s Ovoot Tolgoi mine, located 45 km north of the border with China is targeting sales of almost 15 million tons by 2015. According to Ivanhoe’s October presentation, third-quarter coal sales from Ovoot Tolgoi were forecast to rise to 450 thousand tons which is an increase of 17 percent. Ivanhoe Mines currently owns 80 percent of SouthGobi.

Government office sent reply to letter by stating that Rio Tinto and Ivanhoe Mines don’t have the right to give direction to Mongolia on how to be independent and what to do about development. The reply letter came from Rio Tinto and Ivanhoe Mines yesterday. The letter explained that the previous letter had no intention of affecting the decision made by the government. The letter meant that Rio and Ivanhoe are ready to provide facts and information about the OT deposit if the MPs wanted. Additionally, they are ready to continue with the discussion of OT IA with the Government in order reach an agreement.

We have informed that OT investors sent letters to MPs regarding the IA. The letters did not get to the hands of the PMs yet but we have published the letter with signature of Sam Regal, leader of the working group of the investors. In this letter they have stated that “during this important period of this IA we are able to make official meeting and provide answers if you have any questions or doubts regarding the IA or the OT project “. The letter also mentions about the importance of OT to Mongolia as this will kick start the economy and social development through providing thousands of workplaces and business opportunities. Rio Tinto sees this as new era of Mongolian mining development. Read the rest of this entry »

IVN wrote letters addressed to each and every one of the MPs which states that they are willing to have open discussions and are ready to provide necessary information. There are reasons for this as they want to have one on one discussion with the MPs and willing to provide information about mining industry. Some MPs have limited knowledge of the Mining sector, IVN representatives have noted. Therefore necessary information and knowledge needs to be provided, IVN tends to understand and evaluate.

Speaker Demberel met with senior officials of Ivanhoe Mines and exchanged his opinion on investment agreement on Oyu Tolgoi project.

Mr. John Macken, President of Ivanhoe Mines, John Fognani, Vice President, Keith Marshall and Munkhbat.A, the Executive Director of IMMI attended the meeting.

At the beginning of the meeting, Speaker stated that “The State Great Khural discussed OT investment agreement thoroughly, through the parliamentary session and meetings of party groups and standing committees. The agreement has to be mutually beneficial and efficient. Therefore, the agreement this meeting is being held in order to develop and update and upgrade the mutual understandings towards the agreement”. Read the rest of this entry »

Ivanhoe has financial reserves to continue to advance its flagship copper and gold development properties

SINGAPORE, SINGAPORE–(Marketwire – Nov. 14, 2008) – Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) today announced its results for the third quarter that ended September 30, 2008. (Note: all figures are in U.S. dollars, unless stated in another currency.)

Summary of significant achievements and developments since July 1, 2008

- Ivanhoe Mines remains focused on opportunities to advance the company’s flagship Oyu Tolgoi copper-gold project in Mongolia’s South Gobi Region. A start on construction of the planned mine at Oyu Tolgoi has been delayed by a series of Mongolian political events during the past year, including a national general election. Ivanhoe Mines and its strategic partner, Rio Tinto, recently reiterated to the Mongolian Government their readiness to participate in a resumption of discussions to conclude an Investment Agreement for Oyu Tolgoi. The new coalition government has declared that the development of major mineral deposits, including Oyu Tolgoi, is a matter of high priority. Read the rest of this entry »

Peter Koven, Canwest News Service

In Mongolia, all signs suggest the government is ready and eager to reach out to Western companies and push forward with more development of its massive mineral resources.

This is the news many mining investors have been waiting for, as Mongolia holds some of the best undeveloped deposits in the world and sits right on China’s doorstep. Read the rest of this entry »