Rio Tinto makes $2.7bn play for control of Mongolian mine

Rio Tinto has made a $2.7bn money provide for Turquoise Hill’s remaining shares in a bid to realize management of a Mongolian copper-gold mining mission.

The non-binding provide for the remaining 49 per cent of Turquoise Hill’s share capital was made at a worth of C$34 per share, representing a greater than 32 per cent premium on the corporate’s Friday shut worth. The transaction would give the FTSE 100 mining big full management of Turquoise Hill’s 66 per cent stake within the Oyu Tolgoi mine in Mongolia.

“The Proposed Transaction would allow Rio Tinto to work immediately with the Authorities of Mongolia to maneuver the Oyu Tolgoi mission ahead with an easier and extra environment friendly possession and governance construction,” stated Rio Tinto chief govt Jakob Stausholm.

“With our relationship reset and the underground operations commenced, this transaction demonstrates our clear and unequivocal long-term dedication to Mongolia,” Stausholm added.

The provide comes after Rio Tinto settled a protracted operating dispute with the Mongolian authorities in January over the $6.93bn enlargement of the Oyu Tolgoi mine.

The Mongolian authorities has a 34 per cent stake in Oyu Tolgoi, one of many largest copper and gold deposits on this planet. Rio Tinto controls the rest by means of its 51 per cent stake in Canada’s Turquoise Hill Sources.

Underneath the January settlement Turquoise Hill agreed to cancel $2.4bn in debt owed by the Mongolian authorities and the enlargement mission dedicated to buying power from the Mongolian grid.

The miner has made headlines persistently this yr – with Rio Tinto revelling in a £12.4bn shareholder payout final month, the second largest within the historical past of the London Inventory Change.

Not too long ago, it additionally introduced plans to chop ties with Russia, which incorporates its Queensland-based alumina three way partnership with Rusal.

Earlier this yr, Rio Tinto revealed a damning evaluate of its office tradition – together with complaints of widespread racism and bullying, alongside a number of experiences of sexual assault.

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