Rio Tinto has acquired a majority stake in Ivanhoe Mines, taking its share to just over half the company.
Andrew Harding, Rio’s head of copper, said the move to a majority stake in Ivanhoe is part of Rio Tinto’s commitment to the massive Oyu Tolgoi copper mine in Mongolia.
Rio acquired an additional 15.1 million shares of Ivanhoe, or 2% of its outstanding shares for approximately C$302 million, at C$20 per share.
According to the miner, Rio also has anti-dilution rights that allow it to further increase its stake in Ivanhoe.
However Rio states that it has no intention to acquire addition securities of Ivanhoe, but may in the future depending on its assessment of Ivanhoe’s business, prospects, and financial conditions.
It went on to state that "Rio Tinto also reserves its right to take any permitted action as the majority shareholder of Ivanhoe".
Ivanhoe is approaching an important phase in the development of the Oyu Tolgoi mine, with 70 % of construction now complete.
"The lead-up to first ore in the second half of 2012 will mark an important milestone in the path towards commercial production of copper concentrate, slated for the first half of 2013," Harding added.