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Friday, Aug 9
Mongolia considering IPO of its stake in Rio Tinto mine
- The government of Mongolia is studying converting its 34% stake in the Oyu Tolgoi copper and gold mine into a public company.
- By giving a stake to Mongolian citizens who have complained that the project only benefits foreign investors, the government likely would find it easier to negotiate with partner Rio Tinto (RIO +3.4%).
- Rio, which controls 66% of the mine through its majority stake in Turquoise Hill Resources (TRQ +0.2%), started shipments from the mine last month following delays as Mongolia sought to ensure revenue passed through domestic banks.