Rio Tinto (NYSE:RTP) exercised $393 million in share warrants in Ivanahoe Mines (NYSE:IVN), increasing their stake in the miner by 7.3 percent, now owning 29.6 percent of Ivanhoe.
The two companies are partners in the mineral-rich Oyu Tolgoi mine in Mongolia, which will be among the most productive and lucrative in the world once production begins from it.
Rio made the investment at this time in order that the project can remain on schedule, which is projected to begin production in 2013.
Estimates on gold and copper production are for copper to produce about 450 tons on an annual basis, and gold 330,000 ounce annually over a period of 35 years; a long time for a mine.
If Rio ends up converting all securities and warrants in Ivanhoe, they'll end up owning close to 44 percent of the miner.
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