While there will be a temporary glut in the copper supply in the early part of 2011, as the year goes on, expectations are things will tighten up and after a period of correction, prices will soar, driving up shares of mining giants like BHP Billiton (NYSE:BHP), Freeport-McMoRan (NYSE:FCX), Rio Tinto (RIO) and Teck Resources (NYSE:TCK).
Part of the problem at this time is the poor ore grades the copper giants are hitting, which in the longer run will increase costs, but also the price of copper as the market tightens on the lower supply.
The other good news for the miners with significant copper exposure is these conditions should continue on over the next several years, as demand continues to be strong.
Along with declining ore grades, other factors include delays to mine expansions and disruption from strikes.
The scenario will change when the giant copper deposit at Oyu Tolgoi mine in Mongolia goes online in 2013, where about 450,000 tons of copper is expected to be produced annually. Those benefiting from that will be Ivanhoe Mines (NYSE:IVN) and Rio Tinto.
For now, there will be a temporary copper glut and then everything will begin to tighten as the year goes on, pushing prices up as high a 18 percent, according to analysts.
Showing posts with label Oyu Tolgoi. Show all posts
Showing posts with label Oyu Tolgoi. Show all posts
Tuesday, April 5, 2011
Friday, November 12, 2010
Ivanhoe (NYSE:IVN) Ahead of Schedule with Oyu Tolgoi Mine
Ivanhoe Mines (NYSE:IVN) said in its recent quarterly report that construction at its Oyu Tolgoi copper and gold mine in Mongolia is moving along ahead of schedule.
Partners in the massive project are mining giant Rio Tinto (NYSE:RIO) and the Mongolian government.
Once production launches at the site, it will propel Ivanhoe into the top tier of miners in the world.
Production at Oyu Tolgoi is expected to launch in the latter part of 2012.
Ivanhoe at this time generates the majority of its revenue from its Ovoot Tolgoi coal mine in southern Mongolia.
In their last quarter they had a loss of $24.9 million, or five cents a share, improving from the same quarter last year where they lost $69.8 million or 18 cents a share.
Ivanhoe closed Thursday at $25.97, dropping $0.25, or 0.95 percent.
Partners in the massive project are mining giant Rio Tinto (NYSE:RIO) and the Mongolian government.
Once production launches at the site, it will propel Ivanhoe into the top tier of miners in the world.
Production at Oyu Tolgoi is expected to launch in the latter part of 2012.
Ivanhoe at this time generates the majority of its revenue from its Ovoot Tolgoi coal mine in southern Mongolia.
In their last quarter they had a loss of $24.9 million, or five cents a share, improving from the same quarter last year where they lost $69.8 million or 18 cents a share.
Ivanhoe closed Thursday at $25.97, dropping $0.25, or 0.95 percent.
Monday, October 18, 2010
Marc Faber Likes Ivanhoe (NYSE:IVN), Barrick (NYSE:ABx), Novagold (NYSE:NG), Gold Fields (NYSE: GFI), Newmont (NYSE:NEM)
Marc Faber, the contrarian investor and the real Dr. Doom of the marketplace, has been pushing the value of investing in gold for a number of years. He recently named the gold miners he likes at this time, which are Ivanhoe Mines (NYSE:IVN), Barrick Gold (NYSE:ABx), Novagold (NYSE:NG), Gold Fields (NYSE:GFI), Newmont Mining(NYSE:NEM), Gabriel Resources (TSE:GBU), Centamin Egypt (TSE:CEE) and Sprott Resource (TSE:SCP).
A little suspect is his Novagold pick, as he was recently named to the board of the company.
Barrick and Newmont are obvious as the large-cap miners. Ivanhoe is also among my favorites over the long term, although once their Oyu Tolgoi mine gets going, they will be more like Freeport-McMoran (NYSE:FCX) than primarily a gold miner, as the copper resources there are vast, although so are the gold resources.
Faber recently stated that he believes gold is still inexpensive, and investors should allocate resources to it on a monthly basis.
A little suspect is his Novagold pick, as he was recently named to the board of the company.
Barrick and Newmont are obvious as the large-cap miners. Ivanhoe is also among my favorites over the long term, although once their Oyu Tolgoi mine gets going, they will be more like Freeport-McMoran (NYSE:FCX) than primarily a gold miner, as the copper resources there are vast, although so are the gold resources.
Faber recently stated that he believes gold is still inexpensive, and investors should allocate resources to it on a monthly basis.
Wednesday, September 29, 2010
Ivanhoe (NYSE:IVN) Shares Jump on Mineralization Find
Shares of Ivanhoe Mines Ltd. (NYSE:IVN) soared after they announced the discovery of a mineralized zone of gold and copper 1 kilometre long at its prolific Oyu Tolgoi project in Mongolia.
Consequently, the original estimates of copper and gold could be much larger than thought.
"To intercept almost one kilometre of copper and gold mineralization in a new drill hole is a remarkable development," Executive Chairman Robert Friedland said in a statement.
If this is close to the norm in the mine, the value of it could be astronomical, although that of course has to be proven.
Either way, Ivanhoe and partner Rio Tinto (NYSE:RTP) are sitting on billions worth of minerals.
Production will begin on the mine in the latter part of 2012.
Ivanhoe closed at $24.25 in New York, gaining $1.23, or 5.30 percent.
Consequently, the original estimates of copper and gold could be much larger than thought.
"To intercept almost one kilometre of copper and gold mineralization in a new drill hole is a remarkable development," Executive Chairman Robert Friedland said in a statement.
If this is close to the norm in the mine, the value of it could be astronomical, although that of course has to be proven.
Either way, Ivanhoe and partner Rio Tinto (NYSE:RTP) are sitting on billions worth of minerals.
Production will begin on the mine in the latter part of 2012.
Ivanhoe closed at $24.25 in New York, gaining $1.23, or 5.30 percent.
Thursday, September 16, 2010
Ivanhoe (NYSE:IVN) Slaps Down "False and Misleading" Information from 'Business Spectator' and 'The Australian'
Ivanhoe Mines (NYSE:IVN) noted in a press release that recent information published on the 'Business Spectator' website and in 'The Australian' newspaper contained "false and misleading information" about the mining company.
Concerning the numbers, some of the assertions made which Ivanhoe refutes, includes the costs of the Oyu Tolgoi copper-gold project in Mongolia, which was said to be $4 billion, but is in fact $4.6 billion, according to Ivanhoe. Those numbers include $1 billion to be invested on part of the "phase-two development of the planned underground mine."
Another bit of wrong data is that their partner Rio Tinto (NYSE:RTP) can only acquire a 44 percent stake in Ivanhoe. The percentage is actually higher than that, up to as much as 46.65 percent.
One more serious allegation made against Ivanhoe was they have underestimated the capital costs of the mine, which the miner countered was untrue, and the project's major contracts remain within budget and ahead of schedule.
Full press release
Concerning the numbers, some of the assertions made which Ivanhoe refutes, includes the costs of the Oyu Tolgoi copper-gold project in Mongolia, which was said to be $4 billion, but is in fact $4.6 billion, according to Ivanhoe. Those numbers include $1 billion to be invested on part of the "phase-two development of the planned underground mine."
Another bit of wrong data is that their partner Rio Tinto (NYSE:RTP) can only acquire a 44 percent stake in Ivanhoe. The percentage is actually higher than that, up to as much as 46.65 percent.
One more serious allegation made against Ivanhoe was they have underestimated the capital costs of the mine, which the miner countered was untrue, and the project's major contracts remain within budget and ahead of schedule.
Full press release
Tuesday, September 14, 2010
Rio (NYSE:RTP) Increases Ivanhoe Stake (NYSE:IVN)
Rio Tinto (NYSE:RTP) announced Monday it has increased its stake in Ivanhoe Mines to 34.9 percent. That followed a conversion of a matured convertible credit facility by Rio.
That brings the total investment by Rio in Ivanhoe to $1.73 billion. They also have rights to subscribe for common shares in Ivanhoe, which if exercised, would bring the total stake in the company to about 44 percent.
Ivanhoe has control of the extraordinary Oyu Tolgoi copper-gold project in Mongolia, which is among the largest undeveloped mines in the world.
The two companies are partnering to develop the resource, which also includes a stake by the Mongolian government in the deal.
The project is expected to cost about $5 billion to develop.
Ivanhoe has also signed a preliminary agreement valued at up to $1.8 billion with two global financial institution for financing purposes if needed.
That brings the total investment by Rio in Ivanhoe to $1.73 billion. They also have rights to subscribe for common shares in Ivanhoe, which if exercised, would bring the total stake in the company to about 44 percent.
Ivanhoe has control of the extraordinary Oyu Tolgoi copper-gold project in Mongolia, which is among the largest undeveloped mines in the world.
The two companies are partnering to develop the resource, which also includes a stake by the Mongolian government in the deal.
The project is expected to cost about $5 billion to develop.
Ivanhoe has also signed a preliminary agreement valued at up to $1.8 billion with two global financial institution for financing purposes if needed.
Tuesday, September 7, 2010
Ivanhoe (NYSE:IVN) and Politically Unpredictable Mongolia
Mongolia is dealing with issues it hasn't had to face in the past, and it is leading to unpredictable situations in regard to mining companies, and Ivanhoe Mines (NYSE:IVN), which has a huge project in Mongolia called Oyu Tolgoi, they'll have to keep a close watch on their investment as the continuing narrative unfolds.
The major problem involves building out their infrastructure needed to make mining in the country feasible. All the mineral resources in the world won't help if there isn't the transport facilities in place to move the ore where it needs to go.
Other factors are geopolitical, with China and Russia attempting to exert great pressure on the land-locked country in order to secure many of the resources for themselves.
Mongolia is also starting to understand the economic situation they're in, and corruption has emerged in some cases where existing laws have been changed on a whim, causing licenses to be revoked, as in the case of subsidiaries of Khan Resources Inc (TSE:KRI).
Ivanhoe shouldn't be affected by the volatility, as it seems Mongolia is focusing on new projects and how to frame their resource policy and strategy.
Those in the middle of securing projects or wanting to in the future, could have a long and uncertain ride until these things are ironed out and a stronger rule of law is enacted.
It's like Mongolia has been unsuspectingly awakened from a long sleep and they're trying to figure out how to use their economically atrophied muscles.
The major problem involves building out their infrastructure needed to make mining in the country feasible. All the mineral resources in the world won't help if there isn't the transport facilities in place to move the ore where it needs to go.
Other factors are geopolitical, with China and Russia attempting to exert great pressure on the land-locked country in order to secure many of the resources for themselves.
Mongolia is also starting to understand the economic situation they're in, and corruption has emerged in some cases where existing laws have been changed on a whim, causing licenses to be revoked, as in the case of subsidiaries of Khan Resources Inc (TSE:KRI).
Ivanhoe shouldn't be affected by the volatility, as it seems Mongolia is focusing on new projects and how to frame their resource policy and strategy.
Those in the middle of securing projects or wanting to in the future, could have a long and uncertain ride until these things are ironed out and a stronger rule of law is enacted.
It's like Mongolia has been unsuspectingly awakened from a long sleep and they're trying to figure out how to use their economically atrophied muscles.
Monday, August 9, 2010
Ivanhoe's (NYSE:IVN) Friedland Marketing Up the Company
It's no secret Ivanhoe (NYSE:IVN) is looking for even more financing for its Oyu Tolgoi mine in Mongolia, and Ivanhoe Chairman Robert Friedland has been seen a lot in the news lately letting people know about the incredible project they have in Oyu.
He's been making some interesting comments a la Richard Branson to get the Ivanhoe brand stuck in the minds of potential investors.
Even though he was joking, and in reality probably marketing, Friedland made a comment which made the Oyu Tolgoi mine look like it was valued at trillions of dollars, rather than the approximate $16 billion it is known to be worth.
He also mentioned copper outperforming gold recently, citing the dubious claim that 20 years from now cars are going to be electric, and those cars will need copper for the batteries. That was the hook though, the reality is copper will continue to be in high demand over the next 20 years, and that will have nothing to do with electric cars.
Friedland of course knows this, but he is doing the stir the imagination thing in order to have people associate that with Ivanhoe.
But as far as copper outperforming gold, that would have be on enormous volume, as gold prices will shoot up as soon as the U.S. government or Federal Reserve start do their quantitative easing thing, or printing of money. Rumors are they're moving closer and closer to that in light of the economy stalling and elections coming soon.
Seeing that hasn't worked in the past, and we've never left the recession, unless you think the government throwing money into the economy is a real recovery.
That's why there haven't been any jobs created, the private sector is for the most part doing little or no hiring, and then we hear the news reports of the "unexpected" this and "unexpected" that, when talking about economic news that didn't meat expectations.
For Ivanhoe, once production begins at Oyu Tolgoi, you'll see their stock price shoot up even more, as much of this is in anticipation of the money generating real revenue and profits, and not just potential. They're already up over double the last twelve months, and I think Friedland is trying to create interest in order to land the needed partners to forge ahead and work the extraordinary mine.
He's been making some interesting comments a la Richard Branson to get the Ivanhoe brand stuck in the minds of potential investors.
Even though he was joking, and in reality probably marketing, Friedland made a comment which made the Oyu Tolgoi mine look like it was valued at trillions of dollars, rather than the approximate $16 billion it is known to be worth.
He also mentioned copper outperforming gold recently, citing the dubious claim that 20 years from now cars are going to be electric, and those cars will need copper for the batteries. That was the hook though, the reality is copper will continue to be in high demand over the next 20 years, and that will have nothing to do with electric cars.
Friedland of course knows this, but he is doing the stir the imagination thing in order to have people associate that with Ivanhoe.
But as far as copper outperforming gold, that would have be on enormous volume, as gold prices will shoot up as soon as the U.S. government or Federal Reserve start do their quantitative easing thing, or printing of money. Rumors are they're moving closer and closer to that in light of the economy stalling and elections coming soon.
Seeing that hasn't worked in the past, and we've never left the recession, unless you think the government throwing money into the economy is a real recovery.
That's why there haven't been any jobs created, the private sector is for the most part doing little or no hiring, and then we hear the news reports of the "unexpected" this and "unexpected" that, when talking about economic news that didn't meat expectations.
For Ivanhoe, once production begins at Oyu Tolgoi, you'll see their stock price shoot up even more, as much of this is in anticipation of the money generating real revenue and profits, and not just potential. They're already up over double the last twelve months, and I think Friedland is trying to create interest in order to land the needed partners to forge ahead and work the extraordinary mine.
Thursday, July 15, 2010
Ivanhoe Mines (NYSE:IVN) Continues to Skyrocket
Ivanhoe Mines' (NYSE:IVN) shares continue to shoot up, gaining over $3 a share over the last five trading days. This week it's already up over 22 percent.
Although the future success of Ivanhoe centers on their Oyu Tolgoi mine in Mongolia, it's short term success does as well. The news that they are abandoning their agreement with Rio Tinto (NYSE:RTP) which had restricted them from bringing in new investors was behind this most recent surge in share price, especially over the last couple of days.
The Oyu Tolgoi mine is considered among the three most important in the world, and is the largest that hasn't been worked yet.
Ivanhoe is expected to become one of the major miners as production begins at the site, propelling them into the elite group, but more importantly, generating a lot of revenue and profits for shareholders.
It remains one of the major mining stories now, and should be for years into the future.
Although the future success of Ivanhoe centers on their Oyu Tolgoi mine in Mongolia, it's short term success does as well. The news that they are abandoning their agreement with Rio Tinto (NYSE:RTP) which had restricted them from bringing in new investors was behind this most recent surge in share price, especially over the last couple of days.
The Oyu Tolgoi mine is considered among the three most important in the world, and is the largest that hasn't been worked yet.
Ivanhoe is expected to become one of the major miners as production begins at the site, propelling them into the elite group, but more importantly, generating a lot of revenue and profits for shareholders.
It remains one of the major mining stories now, and should be for years into the future.
Wednesday, July 14, 2010
Ivanhoe (NYSE:IVN) Soars as They Battle Rio Tinto (NYSE:RTP) Over Oyu Tolgoi
Shares of Ivanhoe (NYSE:IVN) soared 14 percent Tuesday as they battled Rio Tinto (NYSE:RTP) over their stake in the gigantic Oyu Tolgoi mine in Mongolia.
The battle between Ivanhoe and Rio began when they notified Rio they were going to exercise their right to issue more shares to investors besides Rio Tinto. This would allow Ivanhoe to sell over 5 percent of its common shares to another mining company.
Rio is fighting this because they say it breaches its private placement agreement, which Rio claims gives them the right to increase their stake in Oyu Tolgoi to 46 percent.
This would obviously change if Ivanhoe sold over 5 percent of common shares, as it would cause them to lose control of the project and the company if a bloc was created which owned over 50 percent of the shares.
Oyu Tolgoi is one of the most significant mines in the world, estimated to be among the top three, and the largest not being mined at this time.
Ivanhoe is doing this to raise more money, and said they will continue to seek other financial options going forward to bring the copper-gold mine online by 2013.
There have been rumors for some time that other mining companies have been wanting to buy a stake in Ivanhoe since they have controlled Oyu Tolgoi. One name in particular that has been coming up a lot lately is China-based Chinalco.
The battle between Ivanhoe and Rio began when they notified Rio they were going to exercise their right to issue more shares to investors besides Rio Tinto. This would allow Ivanhoe to sell over 5 percent of its common shares to another mining company.
Rio is fighting this because they say it breaches its private placement agreement, which Rio claims gives them the right to increase their stake in Oyu Tolgoi to 46 percent.
This would obviously change if Ivanhoe sold over 5 percent of common shares, as it would cause them to lose control of the project and the company if a bloc was created which owned over 50 percent of the shares.
Oyu Tolgoi is one of the most significant mines in the world, estimated to be among the top three, and the largest not being mined at this time.
Ivanhoe is doing this to raise more money, and said they will continue to seek other financial options going forward to bring the copper-gold mine online by 2013.
There have been rumors for some time that other mining companies have been wanting to buy a stake in Ivanhoe since they have controlled Oyu Tolgoi. One name in particular that has been coming up a lot lately is China-based Chinalco.
Friday, July 2, 2010
Rio (NYSE:RTP) Acquires $393 Million in Ivanhoe (NYSE:IVN) Shares
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.
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.
Monday, June 21, 2010
Ivanhoe Mines (NYSE:IVN) Beats Gold Price Trend Today - Up Over 2 Percent
Ivanhoe Mines (NYSE:IVN) (TSE:IVN) went against the grain of gold prices today, and pushed up over 2 percent, gaining $0.30, or 2.02 percent at the close in New York.
In what could become the mining story of the decade, Ivanhoe is poised to continue its rise in value, even if all it had was its Oyu Tolgoi Project in Mongolia, which is scheduled to being production sometime in the middle of 2013, with construction on the mine starting this month.
The project will bring Ivanhoe into the top tier of not just gold mining companies, but mining companies in general, with copper production expected to be at 1.2 billion pounds a year, and gold at 650,000 ounces a year over the first decade of production.
At its peak, single-year production at the project could reach as high as 1.1 million ounces of gold and 1.7 billion pounds of copper. Hints have been swirling that these estimates could possibly be conservative.
Oyu Tolgoi is projected to become one of the three top copper/gold mines in the world, and has a solid, long-term legal and regulatory agreement in place, and is partners with the Government of Mongolia in the project.
Ivanhoe has a 57 percent stake in SouthGobi Resources, a subsidiary also based in Mongolia which has been providing coal to customers in China.
They also own 81 percent of Ivanhoe Australia (ASE:IVA), which a scoping study has concluded has significant molybdenum and rhenium deposits which should offer long-term cashflows, according the company. The caveat there of course is the impact of the 40 super tax on profits which has resulted in many companies putting off projects into the future.
The company also owns the Altynalmas Gold Ltd., in Kazakhstan, recently bumping their position up to a 50 percent stake in the company which controls the Kyzyl Gold Project in that country via a 100 percent stake.
Altogether, Ivanhoe has the underpinnings for a long, profitable run into the future, and in a few short years should become one of the premiere miners in the world, and as mentioned earlier, possibly the mining story of the decade.
If the main solid management and keep operational cost, along with debt, low, they should be one of the best investments in the sector for the long term.
In what could become the mining story of the decade, Ivanhoe is poised to continue its rise in value, even if all it had was its Oyu Tolgoi Project in Mongolia, which is scheduled to being production sometime in the middle of 2013, with construction on the mine starting this month.
The project will bring Ivanhoe into the top tier of not just gold mining companies, but mining companies in general, with copper production expected to be at 1.2 billion pounds a year, and gold at 650,000 ounces a year over the first decade of production.
At its peak, single-year production at the project could reach as high as 1.1 million ounces of gold and 1.7 billion pounds of copper. Hints have been swirling that these estimates could possibly be conservative.
Oyu Tolgoi is projected to become one of the three top copper/gold mines in the world, and has a solid, long-term legal and regulatory agreement in place, and is partners with the Government of Mongolia in the project.
Ivanhoe has a 57 percent stake in SouthGobi Resources, a subsidiary also based in Mongolia which has been providing coal to customers in China.
They also own 81 percent of Ivanhoe Australia (ASE:IVA), which a scoping study has concluded has significant molybdenum and rhenium deposits which should offer long-term cashflows, according the company. The caveat there of course is the impact of the 40 super tax on profits which has resulted in many companies putting off projects into the future.
The company also owns the Altynalmas Gold Ltd., in Kazakhstan, recently bumping their position up to a 50 percent stake in the company which controls the Kyzyl Gold Project in that country via a 100 percent stake.
Altogether, Ivanhoe has the underpinnings for a long, profitable run into the future, and in a few short years should become one of the premiere miners in the world, and as mentioned earlier, possibly the mining story of the decade.
If the main solid management and keep operational cost, along with debt, low, they should be one of the best investments in the sector for the long term.
Monday, June 14, 2010
Ivanhoe Mines (NYSE:IVN): Miner of the Future?
Ivanhoe Mines (NYSE:IVN) may have positioned themselves as one of the top mining companies of the future, as their stake in the copper-gold mining project Oyu Tolgoi in Mongolia, ensures them a place among the top mining companies at minimum, and potential to be among the largest.
The extraordinary production numbers projected by the company through 2040, are an average of 540,000 tons of copper and 670,000 ounces of gold, starting in 2013, through the estimated 27-year life of the mine.
With proven reserves, it's hopeful the cost of financing the operation will kept to a minimum through the years, and that Ivanhoe retains solid leadership in the company.
Executive chairman Robert Friedland has said in the past that the mine could rank among the top several in the world, including legendary mines Escondida and Grasberg.
Those looking for a long-term play in the mining sector probably won't get a better company than Ivanhoe, as there's simply no known mine out there with the reserves in copper and gold for the period of time mentioned, taking into account other large mines already being operational and having resources extracted from them.
Ivanhoe is a company that must be closely watched, as it's sure to explode upwardly in price as production gets closer to launch.
The extraordinary production numbers projected by the company through 2040, are an average of 540,000 tons of copper and 670,000 ounces of gold, starting in 2013, through the estimated 27-year life of the mine.
With proven reserves, it's hopeful the cost of financing the operation will kept to a minimum through the years, and that Ivanhoe retains solid leadership in the company.
Executive chairman Robert Friedland has said in the past that the mine could rank among the top several in the world, including legendary mines Escondida and Grasberg.
Those looking for a long-term play in the mining sector probably won't get a better company than Ivanhoe, as there's simply no known mine out there with the reserves in copper and gold for the period of time mentioned, taking into account other large mines already being operational and having resources extracted from them.
Ivanhoe is a company that must be closely watched, as it's sure to explode upwardly in price as production gets closer to launch.
Friday, May 21, 2010
Ivanhoe (TSE:IVN) Oyu Tolgoi Financing Deal
Ivanhoe (TSE:IVN) (NYSE:IVN) is close to securing financing for its Oyu Tolgoi project, one which will bring them into the top tier of mining companies in the world.
On Friday they signed a preliminary agreement with the World Bank Group's International Finance Corp. and the European Bank for Reconstruction and Development.
Each financial institution could provide up to $300 million each to finance the project, while also working to garner another $1.2 billion from commercial lenders.
The package with the two financial institutions would be offered in two stages.
Other financing for the $4.6 billion project could come from export credit agencies, which could bring another $500 million for the project.
Ivanhoe is partners with the Mongolian government, and Rio Tinto (LON:RIO) (ASE:RIO) in the venture.
On Friday they signed a preliminary agreement with the World Bank Group's International Finance Corp. and the European Bank for Reconstruction and Development.
Each financial institution could provide up to $300 million each to finance the project, while also working to garner another $1.2 billion from commercial lenders.
The package with the two financial institutions would be offered in two stages.
Other financing for the $4.6 billion project could come from export credit agencies, which could bring another $500 million for the project.
Ivanhoe is partners with the Mongolian government, and Rio Tinto (LON:RIO) (ASE:RIO) in the venture.
Wednesday, May 12, 2010
Ivanhoe Mines (TSE:IVN) Appoints Oyu Tolgoi Chairman
Ivanhoe Mines (TSE:IVN) (NYSE:IVN) announced today that they've appointed a Chairman of the Board of Directors of Oyu Tolgoi, their giant copper-gold project in Mongolia.
Mongolian diplomat Galsan Batsukh was nominated for the Chairman position, and is expected to be confirmed in an upcoming confirmation meeting of the first meeting of the board of directors.
Ivanhoe has a 66 percent stake in Oyu Tolgoi LLC and the Mongolian government has acquired a 34% stake.
Oyu Tolgoi LLC has the mining licenses for the project, which they will use to build and operate the huge mine in the southern part of the country.
Production is scheduled to begin in 2013. Rio Tinto (NYSE:RTP) is a strategic partner for the development of the mine.
Mongolian diplomat Galsan Batsukh was nominated for the Chairman position, and is expected to be confirmed in an upcoming confirmation meeting of the first meeting of the board of directors.
Ivanhoe has a 66 percent stake in Oyu Tolgoi LLC and the Mongolian government has acquired a 34% stake.
Oyu Tolgoi LLC has the mining licenses for the project, which they will use to build and operate the huge mine in the southern part of the country.
Production is scheduled to begin in 2013. Rio Tinto (NYSE:RTP) is a strategic partner for the development of the mine.
Tuesday, May 11, 2010
Ivanhoe Mines' (NYSE:IVN) Oyu Tolgoi Estimates In
Ivanhoe Mines (NYSE:IVN) released its estimates for their Oyu Tolgoi project in Mongolia, and the numbers are staggering, and will position Oyu Tolgoi as one of the largest mines in the world.
Estimates for annual copper production at the mine is 1.2 billion pounds, while gold estimates are for production to reach 650,000 ounces annually. Gold production is projected to be at that level for a decade.
There is an estimated 46.4 million ounces of gold at Oyu Tolgoi, and an enormous 81.3 billion pounds of copper. That could extend the life of the mine to 59 years, according to Ivanhoe, who is working with Rio Tinto (NYSE:RTP) in the development of the giant mine.
Rio has a 22.4 percent stake in Ivanhoe.
Estimates for annual copper production at the mine is 1.2 billion pounds, while gold estimates are for production to reach 650,000 ounces annually. Gold production is projected to be at that level for a decade.
There is an estimated 46.4 million ounces of gold at Oyu Tolgoi, and an enormous 81.3 billion pounds of copper. That could extend the life of the mine to 59 years, according to Ivanhoe, who is working with Rio Tinto (NYSE:RTP) in the development of the giant mine.
Rio has a 22.4 percent stake in Ivanhoe.
Friday, April 9, 2010
Ivanhoe (NYSE:IVN) Constructing Mongolia Gold, Copper Mine
Ivanhoe Mines (NYSE:IVN) development of their Oyu Tolgoi gold and copper project is about to begin, with a price tag of approximately $5.5 billion committed to the construction.
Production at the mine is estimated to begin in 2013, and an initial investment of $758 million will be put toward the project this year.
Ivanhoe has a strong partner in Rio Tinto (ASE:RIO), which has increased their stake in Ivanhoe in anticipation of the eventual haul the largest gold and copper mine in the world yet to be worked will produce.
Rio Tinto will finance the equipment to use at the project.
Estimates are Oyu Tolgoi has 46 million ounces of gold and 81 billion pound of copper reserves.
Production at the mine is estimated to begin in 2013, and an initial investment of $758 million will be put toward the project this year.
Ivanhoe has a strong partner in Rio Tinto (ASE:RIO), which has increased their stake in Ivanhoe in anticipation of the eventual haul the largest gold and copper mine in the world yet to be worked will produce.
Rio Tinto will finance the equipment to use at the project.
Estimates are Oyu Tolgoi has 46 million ounces of gold and 81 billion pound of copper reserves.
Thursday, April 1, 2010
Ivanhoe Mines (TSE:IVN), Rio Tinto (ASE:RIO) Starting Construction on Oyu Tolgoi Project
Ivanhoe Mines, Rio Tinto and Oyu Tolgoi Project
Ivanhoe Mines (TSE:IVN) and Rio Tinto (ASE:RIO) have finished the preliminary requirements concerning the Oyu Tolgoi project in Mongolia, and are ready to begin construction in the second quarter.
The paperwork required to advance to the construction phase has been completed, and the project, consisting of copper and gold, is ready to begin.
The Oyu Tolgoi project is one of the largest untapped deposits of gold and copper known in the world today, and it should bring huge dividends to Ivanhoe and Rio Tinto for a long time to come.
Ivanhoe Mines will own 66 percent of the project while state-owned Erdenes MGL LLC will own the remaining 34 percent. Rio Tinto's role is one of technical and financial support.
Rio Tinto also has a 22.4 percent stake in Ivanhoe Mines, along with options to acquire a stake up to 46.6 percent over the next 19 months.
For the beginning of full-scale construction, a committee consisting of representatives from Ivanhoe Mines and Rio Tinto have approved an initial financial outlay of $758 million.
The mine is expected to be operational in 2012 and commercial production to begin in 2013 for both copper and gold. Total costs to get things up and running are estimated to eventually reach about $5 billion.
Ivanhoe Mines (TSE:IVN) and Rio Tinto (ASE:RIO) have finished the preliminary requirements concerning the Oyu Tolgoi project in Mongolia, and are ready to begin construction in the second quarter.
The paperwork required to advance to the construction phase has been completed, and the project, consisting of copper and gold, is ready to begin.
The Oyu Tolgoi project is one of the largest untapped deposits of gold and copper known in the world today, and it should bring huge dividends to Ivanhoe and Rio Tinto for a long time to come.
Ivanhoe Mines will own 66 percent of the project while state-owned Erdenes MGL LLC will own the remaining 34 percent. Rio Tinto's role is one of technical and financial support.
Rio Tinto also has a 22.4 percent stake in Ivanhoe Mines, along with options to acquire a stake up to 46.6 percent over the next 19 months.
For the beginning of full-scale construction, a committee consisting of representatives from Ivanhoe Mines and Rio Tinto have approved an initial financial outlay of $758 million.
The mine is expected to be operational in 2012 and commercial production to begin in 2013 for both copper and gold. Total costs to get things up and running are estimated to eventually reach about $5 billion.
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