Rio, Ivanhoe, Mongolia Reaffirm Commitment To Oyu Tolgoi Pact

Anglo-Australian miner Rio Tinto PLC (RIO), Canada-based Ivanhoe Mines Ltd (IVN.T) and the Mongolia government reaffirmed their commitment Thursday to keep to the terms of the original investment agreement for the massive Mongolian Oyu Tolgoi gold and copper project.

"Ivanhoe Mines, Rio Tinto and the government of Mongolia have concluded discussions on the two aspects of the investment agreement that were raised by the government of Mongolia, and are pleased to confirm that all parties have reaffirmed their continued support for the investment agreement and its implementation," the three parties said in a joint statement.

The Mongolian government had invited Ivanhoe and Rio Tinto to start talks on revising certain terms of the 2009 agreement, which among other things included raising Mongolia's stake in the Oyu Tolgoi deposit to 50%, rather than wait an agreed 30 years.

Ivanhoe Mines discovered the Oyu Tolgoi deposits and holds a 66% interest in the project, while the Mongolian government owns the remaining 34% stake. Rio Tinto is the project operator and owns a 49% stake in Ivanhoe Mines.

The project is forecast to start commercial production of copper, gold and silver concentrate in the first half 2013 and will be able to produce 450,000 metric tons of copper and 330,000 troy ounces of gold annually on average.

-By Alex MacDonald, Dow Jones Newswires; 44 20 7842 9328; alex.macdonald@dowjones.com

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