Source: http://www.miningweekly.com                    Date: 16 September, 2010

Rio Tinto has increased its holding in Ivanhoe Mines by 5.3%, after the maturity of a USD350-million convertible loan that Rio provided to Ivanhoe in 2007. The facility was fully drawn down by mid-2008, and the outstanding principal and accrued interest of USD400 million was automatically converted on maturity into common shares of Ivanhoe, at USD10 a share.

Rio Tinto now owns 34.9% or about 185 million shares of the Vancouver-based company, and could increase its holding to about 44% if it were to exercise all the share-purchase warrants it owns. Ivanhoe holds a majority stake in the Oyu Tolgoi project, which is scheduled to start first production late in 2012. The company also owns 65% of Mongolian coal-miner SouthGobi Energy Resources and a controlling interest in Ivanhoe Australia.

Ivanhoe and Rio Tinto revealed in July that a dispute had developed over Ivanhoe's new shareholder rights plan, which Rio said breached the terms of existing agreements between the companies. The firms were headed for arbitration to resolve the issue.