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.

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