[cpsnewswire] (Reuters) Chinalco may take stake in Mongolian copper mine

Chinalco may take stake in Mongolian copper mine

* Chinalco may buy stake in Oyu Tolgoi copper-gold mine

* Rio may convert stake in Ivanhoe into direct mine holding

* Talks may results in three-way agreement

LONDON, July 7 (Reuters) - Global miner Rio Tinto's (RIO.AX) (RIO.L) biggest shareholder, China's Chinalco, is considering buying a stake in the massive Oyu Tolgoi copper-gold project in Mongolia, according to a regulatory filing. Oyu Tolgoi is billed as one of the world's biggest undeveloped mine deposits and is expected to cost $4.6 billion to build.

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POTENTIAL CONVERSION

Rio has been holding talks with Ivanhoe about "the potential conversion of its ... equity stake in the company into a direct ownership interest in the Oyu Tolgoi copper and gold mineral development project," the filing said.

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The end result of the talks with Chinalco could be a two-way or three-way agreement between Ivanhoe, Rio and Chinalco, Rio added.

Any such deal would require the approval of the Mongolian government, Rio said in the filing.

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Rio has also discussed the mine project with the European Bank for Reconstruction and Development and the International Finance Corp, the finance arm of the World Bank, it added.

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The mine is expected to produce 544,000 tonnes of copper and 650,000 ounces of gold annually over its first 10 years, and operate for at least 27 years.

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"Mogi" Munkhdul Badral

CPS International

Email: mogi@cpsinternational.mn

Mobile: +976-99996779

CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based ASX Licensed Financial Services Company. To trade ASX stocks, feel free to contact me at mogi@cpsinternational.mn or +976-9999-6779.