Tuesday, September 14, 2010

[cpsnewswire] [BREAKING NEWS] Rio Raises IVN Stake; TT Bid Next Month; Mitsui-Shenhua Joint TT Bid

CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at or +976-99996779.




Rio Raises Ivanhoe Stake as Loan Converts Into Shares 


Sept. 13 (Bloomberg) -- Rio Tinto Group, the world’s third- largest mining company, raised its holding in Ivanhoe Mines Ltd. to 35 percent after the automatic conversion of a $350 million credit facility.

The loan and the accrued interest -- totaling $400.8 million -- converted into about 40 million shares at $10 apiece, London-based Rio said today in a statement. The loan was agreed on with Ivanhoe in 2007 and matured today, Rio said.

Rio and Ivanhoe are building the $4.6 billion Oyu Tolgoi copper and gold mine in Mongolia, which Rio has described as the world’s largest untapped copper and gold deposit, due to start output in 2013. The two companies are locked in a dispute over a shareholder rights plan adopted by Ivanhoe in April.

Under existing share-purchase warrants, Rio has the right to increase its stake to about 44 percent, it said today. In a July filing, Rio said it had held talks with Aluminum Corp. of China, which had indicated an interest in acquiring a minority stake in Ivanhoe or the project.

Ivanhoe, which spent more than six years negotiating an accord with Mongolia for the project, said in January it hired Citigroup Inc. to study options, including debt and equity offerings and asset sales.

Rio also said in the July filing it’s in talks with Ivanhoe about converting its equity stake in the company into a direct ownership stake in the mine. Any arrangement may require approval from the Mongolian government, Rio said.

The 81.3 billion pounds of copper and 46.4 million ounces of gold at Oyu Tolgoi may give the site a 59-year life, Ivanhoe said in May. The mine will produce an average of 1.2 billion pounds of copper and 650,000 ounces of gold a year for the first decade.

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Mongolia to Take Bids for Tavan Tolgoi Contractor Next Month


Sept. 13 (Bloomberg) -- Mongolia will take bids for a contractor to mine Tavan Tolgoi, one of the world’s largest untapped deposits of steel-making coal, next month, said the country’s minister for minerals and energy.

“The bidding for the operator will be done in early October,” Dashdorj Zorigt said in an interview in the Chinese city of Tianjin today.

Mongolia, which shares a border with China and Russia, wants to retain ownership of new mines including Tavan Tolgoi, which holds more than 6 billion metric tons of coal. Among the companies that have said they are keen to develop Tavan Tolgoi is China Shenhua Energy Co., the biggest Chinese coal producer.

The nation expects to set up a state-controlled company, Erdenes Tavan Tolgoi, to oversee the deposit before the start of the mining season in April, Zorigt said on Aug. 3.

“The government is in the process of appointing an independent board and CEO for the Tavan Tolgoi company,” he said today.

Mongolia plans to sell 30 percent of the company controlling Tavan Tolgoi in share sales to help fund $1.5 billion of initial development cost, the minister said on July 8. The shares will be sold in Mongolia and overseas.

The government hasn’t decided which overseas stock market will handle the sale, Zorigt said today.

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Mitsui, Shenhua tie up for Mongolia coalfield bid-Nikkei


Sept 14 (Reuters) - Japanese trading house Mitsui & Co (8031.T) will team up with the world's largest coal producer Shenhua Group Corp to bid for development rights to Mongolia's Tavan Tolgoi coalfield, the Nikkei business daily reported.

Chinese Premier Wen Jiabao has also pledged a total of 500 million yuan to the Mongolian government, in the form of both aid and loans, but the Mongolian government is believed to be cautious about falling under the economic control of China, the business daily reported.

Brisk economic growth in emerging markets has fueled global demand for coal, setting off a race to secure production sources, the newspaper said.

China-based Shenhua has decided to extend its private railway network to Mongolian border to provide a coal transport route, the daily said.

The collaboration with Mitsui will mitigate the fear and will give Shenhua, the world's largest coal producer, an edge in winning the mining project, which is said to be one of the largest in the world, the daily said.

For Mitsui, which hopes to tap Shenhua's coal mining know-how, the tie-up would provide an opportunity to increase its mine concessions, the Nikkei report said.

However, Mitsui and Shenhua are likely to face a stiff competition from other bidders from the U.S., Japan, India, Russia and South Korea, according to the report.

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"Mogi" Munkhdul Badral

Executive Director

CPS International


Mobile: +976-99996779


CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at or +976-99996779.


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