Ivanhoe Falls After Mongolia Seeks Bigger Stake in Copper Mine

Bloomberg reported that Ivanhoe Mines Ltd. (NYSE:IVN) declined in Toronto trading after Mongolia announced it wanted to raise its stake in one of the world’s largest undeveloped copper-gold mines.
The market news is quoted as saying:

Ivanhoe, developing the Oyu Tolgoi deposit with Rio Tinto Group, fell C$1.51, or 9.1 percent, to C$15 yesterday at 4 p.m. in Toronto Stock Exchange trading, after earlier dropping as much as 21 percent.

The government of Mongolia is seeking to boost its stake to 50 percent from 34 percent, Dashdorj Zorigt, Mongolia’s minerals minister, told reporters at Oyu Tolgoi on Sept. 25. Such an increase is permitted only after 30 years, according to a summary of the $10 billion project agreement from London-based Rio, which said the new proposal may alarm foreign investors.

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