Date Closed

October 18, 2006

Lead Office

Toronto

Value

1.50 Billion USD

On October 18, 2006, Rio Tinto, one of the world's leading mining groups, entered into an agreement with Vancouver-based Ivanhoe Mines to make an equity investment of up to US$1.5 billion Ivanhoe in order to jointly manage Ivanhoe's Oyu Tolgoi copper-gold mining project in Mongolia's South Gobi region.  The Oyu Tolgoi project is the world's largest undeveloped copper-gold resource and, when completed, is expected to account for 25% of Mongolia's GDP.  A joint Ivanhoe-Rio Tinto technical committee will manage all aspects of the engineering, construction, development and operation of the Oyu Tolgoi mining project.  Representatives of Rio Tinto will also sit on Ivanhoe's board.  Robert Friedland, currently the largest shareholder of Ivanhoe, has agreed to support the transactions contemplated by the agreement between Rio Tinto and Ivanhoe.

McCarthy Tétrault LLP represented Rio Tinto, with a team led by Shea Small.