Ivanhoe sees low chance of power delay to Oyu Tolgoi mine
* CEO sees only small chance of power-related delay to Oyu Tolgoi
* China anxious for copper form Oyu Tolgoi - Friedland
* Mongolian mine one of world's largest copper deposits
MELBOURNE, Dec 1 (Reuters) - Ivanhoe Mines said on Thursday there was only a small chance of a delay to a power contract with China, crucial to running the massive Oyu Tolgoi copper project in neighbouring Mongolia.
The mine needs power supply by the third quarter of 2012 in order to start commercial production of copper concentrate by its 2013 target, and is counting on a power being delivered under a pact between China and Mongolia.
Construction of coal-fired power plant in Mongolia would be next the best option.
Ivanhoe Chief Executive Robert Friedland said the company was confident China would deliver the power because it is counting on Mongolia for copper.
"The reason the electricity will be developed on time is that the Chinese are extremely anxious to buy our copper," he said following a business address in Melbourne.
"There is a very, very small probability of a delay," he said.
Vancouver-based Ivanhoe is 49 percent owned by global mining giant Rio Tinto , which is counting on production from Oyu Tolgoi, one of the largest known copper deposits in the world, to fuel its copper growth.
Ivanhoe last month said construction at the mine in the South Gobi desert will be 70 percent complete by the end of 2011, with commercial production seen in the first half of 2013.
Friedland said the move on Wednesday by six major central banks to make cheap debt available to European lenders was encouraging for the $4 billion in project financing that the company was in the midst of negotiating.
Two European banks, BNP Paribas and Standard Chartered, are the lead commercial banks working on the project financing.
* China anxious for copper form Oyu Tolgoi - Friedland
* Mongolian mine one of world's largest copper deposits
MELBOURNE, Dec 1 (Reuters) - Ivanhoe Mines said on Thursday there was only a small chance of a delay to a power contract with China, crucial to running the massive Oyu Tolgoi copper project in neighbouring Mongolia.
The mine needs power supply by the third quarter of 2012 in order to start commercial production of copper concentrate by its 2013 target, and is counting on a power being delivered under a pact between China and Mongolia.
Construction of coal-fired power plant in Mongolia would be next the best option.
Ivanhoe Chief Executive Robert Friedland said the company was confident China would deliver the power because it is counting on Mongolia for copper.
"The reason the electricity will be developed on time is that the Chinese are extremely anxious to buy our copper," he said following a business address in Melbourne.
"There is a very, very small probability of a delay," he said.
Vancouver-based Ivanhoe is 49 percent owned by global mining giant Rio Tinto , which is counting on production from Oyu Tolgoi, one of the largest known copper deposits in the world, to fuel its copper growth.
Ivanhoe last month said construction at the mine in the South Gobi desert will be 70 percent complete by the end of 2011, with commercial production seen in the first half of 2013.
Friedland said the move on Wednesday by six major central banks to make cheap debt available to European lenders was encouraging for the $4 billion in project financing that the company was in the midst of negotiating.
Two European banks, BNP Paribas and Standard Chartered, are the lead commercial banks working on the project financing.
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