Rio Tinto and Ivanhoe Mines have
called a truce, which will result in the international mining giant providing
billions of dollars in financing and assuming management of Ivanhoe”s Oyutolgoi
copper-gold project in Mongolia. The mining companies had been in a fight over
Ivanhoe”s institution of a so-called “poison pill” plan to protect
against a hostile or creeping takeover.

“The mutually beneficial
evolution and expansion of the scope of Ivanhoe”s four-year relationship with
Rio Tinto comes at a pivotal time in the development of Oyu Tolgoi,”
Ivanhoe executive chairman and chief executive Robert Friedland said in a
statement Wednesday. The company also said David Huberman, the lead independent
director on the Ivanhoe Mines board, will take over as chairman at Ivanhoe”s
next annual meeting. Friedland will remain a director and chief executive.

Rio Tinto said the deal will help
speed development of the mine, with first production now expected to start in
late 2012, six months ahead of schedule. “We are looking forward to
bringing Rio Tinto”s world-class operating and technical capability to the
development of one of the world”s greatest copper-gold mines of tomorrow,”
Rio Tinto Copper”s chief executive, Andrew Harding, said in a statement.

“Together with Ivanhoe and the
Government of Mongolia, we are determined to develop Oyu Tolgoi in a
sustainable, mutually beneficial manner for the people of Mongolia.”