UPDATE 1-Wide interest in Ivanhoe project stake-exec
* Major mining groups interested in Oyu Tolgoi in Mongolia
* Ivanhoe natural seller since it mainly exploration firm
* Would respect wishes of partner Rio Tinto
(Adds more details, quotes, background)
By Eric Onstad
LONDON, May 19 (Reuters) - Major mining firms have shown strong interest in buying a stake in the Oyu Tolgoi copper-gold project in Mongolia, majority owner Ivanhoe Mines (IVN.TO) said on Wednesday.
"We've had a lot of interest, we've had a lot of interest from other majors," Deputy Chairman Peter Meredith said on the sidelines of the World Mining Investment Congress.
He added any sale would have to be done with the knowledge of Rio Tinto (RIO.L) (RIO.AX), the operator of Oyu Tolgoi, due to be one of the world's three biggest copper-gold mines.
"Our partner is Rio Tinto, so we have to be respectful of what their dreams and desires are," he said.
Rio owns 22.4 percent of Ivanhoe and has the right to increase that to 46.6 percent over the next two years.
Ivanhoe owns 66 percent of Oyu Tolgoi, due to cost $4.6 billion to build, and the Mongolian government has the remaining stake.
It made sense to consider a divestment since Ivanhoe was primarily an exploration company, Meredith said.
"People don't judge us by earnings per share ... As it gets closer to production, it makes sense that somebody who wants copper revenues will come along and say maybe I need a piece of that."
Most huge copper mines have multiple owners, such as the world's biggest - Escondida in Chile - so it would be natural for Oyu Tolgoi to have another partner.
"There is likely to be another participant before it is all over," Meredith said.
The founder and 27-percent owner of Ivanhoe, Chairman Robert Friedland, would be key in deciding about selling a stake, Meredith said.
Output is due to start in 2013 and the mine is due to produce an average of 544,000 tonnes of copper and 650,000 ounces of gold a year during the first 10 years.
Oyu Tolgoi has a projected mine life of 27 years, but this would more than double to 59 years if inferred resources are included.
(Editing by David Cowell)
* Ivanhoe natural seller since it mainly exploration firm
* Would respect wishes of partner Rio Tinto
(Adds more details, quotes, background)
By Eric Onstad
LONDON, May 19 (Reuters) - Major mining firms have shown strong interest in buying a stake in the Oyu Tolgoi copper-gold project in Mongolia, majority owner Ivanhoe Mines (IVN.TO) said on Wednesday.
"We've had a lot of interest, we've had a lot of interest from other majors," Deputy Chairman Peter Meredith said on the sidelines of the World Mining Investment Congress.
He added any sale would have to be done with the knowledge of Rio Tinto (RIO.L) (RIO.AX), the operator of Oyu Tolgoi, due to be one of the world's three biggest copper-gold mines.
"Our partner is Rio Tinto, so we have to be respectful of what their dreams and desires are," he said.
Rio owns 22.4 percent of Ivanhoe and has the right to increase that to 46.6 percent over the next two years.
Ivanhoe owns 66 percent of Oyu Tolgoi, due to cost $4.6 billion to build, and the Mongolian government has the remaining stake.
It made sense to consider a divestment since Ivanhoe was primarily an exploration company, Meredith said.
"People don't judge us by earnings per share ... As it gets closer to production, it makes sense that somebody who wants copper revenues will come along and say maybe I need a piece of that."
Most huge copper mines have multiple owners, such as the world's biggest - Escondida in Chile - so it would be natural for Oyu Tolgoi to have another partner.
"There is likely to be another participant before it is all over," Meredith said.
The founder and 27-percent owner of Ivanhoe, Chairman Robert Friedland, would be key in deciding about selling a stake, Meredith said.
Output is due to start in 2013 and the mine is due to produce an average of 544,000 tonnes of copper and 650,000 ounces of gold a year during the first 10 years.
Oyu Tolgoi has a projected mine life of 27 years, but this would more than double to 59 years if inferred resources are included.
(Editing by David Cowell)
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