In a filing with U.S.
regulators, the London-based Rio Tinto has said it is in talks with the
Aluminum Corporation of China (Chinalco) — a large Rio Tinto shareholder —
about buying a minority equity stake in Ivanhoe Mines Ltd., or a direct
interest in Ivanhoe”s signature copper-gold project in Oyutolgoi.

“If any arrangement is
agreed, it may be a bipartite or tripartite arrangement with (Ivanhoe) and/or
Rio Tinto,” it said. Any such arrangement may require approval from
Ivanhoe, Rio Tinto and the Mongolian government.

The company said it has also
had discussions about the Mongolian project with “numerous parties,”
including the European Bank for Reconstruction and Development and the World
Bank”s International Finance Corporation. Ivanhoe is working with both
organizations to evaluate a major financing package for construction of the
planned USD4.6-billion Oyutolgoi mining complex. “Rio Tinto intends to
continue its discussions,” it stated.

Rio Tinto has increased its
stake in Ivanhoe Mines Ltd. by 7.3 per cent to almost 30 per cent as Ivanhoe
continues to develop the project. Rio Tinto is also continuing to talk with
Ivanhoe about the potential conversion of the equity stake in Ivanhoe of a
subsidiary, Rio Tinto International Holdings Ltd., into a direct ownership
interest in the Mongolian project. Ivanhoe has declined to comment on Rio
Tinto”s filing or its discussions.

Rio Tinto and Ivanhoe are
development partners for the Oyutolgoi project. Production is expected to
commence in 2013, with a five-year ramp up to full production.