Ivanhoe Mines Sees Rio Arbitration Done In Couple Of Weeks

Canada-based Ivanhoe Mines Ltd. (IVN.T) expects to conclude an arbitration process with its largest shareholder, Rio Tinto PLC (RIO), regarding Ivanhoe's adopted shareholders' rights plan in the next couple of weeks, possibly even next week, Ivanhoe's deputy chairman said Friday.

"The results will be known within the next couple of weeks," Peter Meredith told an audience at a Mongolia Investment Summit. "Maybe even next week."

Rio Tinto, a 49% shareholder in Ivanhoe, has an agreement in place that prevents it from increasing its stake in Ivanhoe beyond that amount until Jan. 18, 2012. After that date, it will be able to increase its stake in Ivanhoe

Ivanhoe's shareholders, however, adopted a shareholder rights plan two years ago that requires any shareholder that owns 20% of shares to make a full offer to all shareholders if they seek to increase their stake in the company. Rio Tinto is arguing it wouldn't have to make a full offer because its rights are "grandfathered," whereas Ivanhoe says it would have to be based on the shareholder rights plan, Meredith said.

Ivanhoe is 66% owner of Mongolia's massive Oyu Tolgoi copper and gold project, which is due to start commercial production in the middle of 2013. The Mongolian government owns the remaining 34% stake and Rio Tinto is the project operator.

-By Alex MacDonald, Dow Jones Newswires; +44 (00207 842 9328; alex.macdonald@dowjones.com

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