Source:  Reuters                   Date: 01 November, 2010

Ivanhoe Mines said on Tuesday it has filed counter-claims against Rio Tinto, in relation to an arbitration process that was launched by the Anglo-Australian miner earlier this year. Vancouver-based Ivanhoe and Rio are developing the nearly USD5-billion Oyu Tolgoi copper-gold project Mongolia.

The two companies have been locked in a dispute over a shareholder rights plan adopted by Ivanhoe in May. Rio, which owns roughly 35 percent of Ivanhoe's outstanding shares, alleges that the plan is in breach of its contractual rights. Ivanhoe rejects Rio Tinto's claim.

The Canadian exploration company has also counter-claimed that Rio itself breached the terms of their private placement agreement by engaging in activities that could affect the control of Ivanhoe without the company's permission. Earlier this year in a securities filing, Rio said its minority shareholder Chinalco had indicated an interest in acquiring a minority equity stake in Ivanhoe.

An independent arbitrator has scheduled hearings on the claim and counter-claim between January 18 and February 5, 2011.