Rio Tinto which has since October 2006 a 9

Nine years of exploration of a handful of determined geologists and more than six years of waiting, punctuated by negotiations difficult, but the result is there. The determination of the small Canadian exploration Corporation Ivanhoe Mines and Rio Tinto weight thrown in the balance since 2006 eventually pay. The giant mining project of Oyu Tolgoi copper and gold, located in the Gobi desert, 80 km north of the Chinese border, can be developed.

The Government of Mongolia has awarded, yesterday, the two companies after ensuring a consistent 34 stake in Ivanhoe Mines Mongolia, the joint venture was given the license for operation of the site. The Ulaanbaatar Plan is committed to maintaining a stable environment of operations and the tax plan, as well as to contribute to the financing of the project in various forms. Rio Tinto, which has since October 2006 a 9.95 stake in Ivanhoe Mines, will acquire the same additional participation. The whole amount sum all modest US $ 691 million, while his partner is valued on the Toronto Stock Exchange near us $ 5 billion. But it is very likely that the anglo-australienne major did not remain there.

Treasures in view

The Agreement sealed three years ago with Ivanhoe Mines authorizes it to maximize its share in the capital of the latter to 46,65. The goal of Rio Tinto was clearly posted yesterday by Bret Clayton, responsible for the company diamonds and copper activities. "We want to be a partner of the Mongolia for decades", he said.

The treasures illicitly retained by Oyu Tolgoi fully justified his remarks. "Then the size and quality of current Oyu Tolgoi ore reserves are already first-order, the potential of exploration are exciting," he completed. This is why the duo of companies in charge of the development of the project intend to complete it by 2013. Five years later, in 2018, the mine will work at full speed and deliver approximately 450,000 tons of copper per year and 330,000 ounces of gold. Inferred reserves have been encrypted in March 2008 more than 38 billion pounds of red metal and more than 24 billion ounces of gold. The lifetime of the mine is expected for forty years. The full exploitation of its resources will require 15 years.

The investment will be completed for the construction of Oyu Tolgoi is at its sheer scale: about $ 5 billion, of which 2.4 guaranteed by Rio Tinto. It is not excluded that Ivanhoe Mines Mongolia is required to use third-party capital to finance the project. Experts in Credit Switzerland are considering entry into the capital of Ivanhoe Mines of one or two "strategic" investors up to 10. Recently, the Canadian firm unveiled have been approached by several sovereign wealth funds. Naturally, the eyes are turning to China Investment Corp. (CIC) and Temasek, the financial arm of Singapore. Remains in effect to address several important issues related to infrastructure (energy and transport). However, calculated on the basis of the current cash copper and gold, the value of this operation is estimated at 10 billion dollars by analysts at HSBC (6.6 billion excluding the Mongolian participation). If the bet of Oyu Tolgoi is certainly risky, the opportunities it offers are enormous.