Mongolia considering IPO of its stake in Rio Tinto mine

|About: Rio Tinto plc (RIO)|By:, SA News Editor

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.