COPPER-GOLD DEVELOPMENT: Ivanhoe promises US$758 million for Oyu Tolgoi construction next year

MONGOLIA — Now that most of the details of the investment agreement have been worked out with the Mongolian government, Ivanhoe Mines of Vancouver says it will spend US$758 million in 2010 at its Oyu Tolgoi copper-gold project to begin full-scale construction. Construction of the initial open pit could be completed in 2012 and commercial production begin in 2013.

The list of work to be undertaken next year includes:

?         Resumption of sinking at the 10-metre-diameter No.2 production shaft for the Hugo Dummett deposit.

?         Construction of the 97-metre-tall No.2 headframe.

?         Continued lateral underground development in the vicinity of the No.1 shaft.

?         Pouring the foundation for a 100,000-t/d concentrator and delivery of related materials.

?         Installation of a 20-MW power station and 35-kV distribution system.

?         Initial earthworks for the open pit mine at the Southern Oyu deposits.

?         Building a 105-km paved highway to the Mongolia-China border.

?         Construction of a regional airport to accommodate plans the size of a Boeing 737.

Ivanhoe says it has US$1 billion in its treasury and expects to boost that by US$390 million if Rio Tinto exercises its warrants next year. More information is posted at www.IvanhoeMines.com.