Rio Tinto, the world’s second-largest metals and mining corporation, has proposed to buy the 49% of Canada’s Turquoise Hill for about $2.7 billion. paving the way for direct ownership of the massive Oyu Tolgoi copper-gold mining project in Mongolia.
The non-binding, all-cash C$34 per share offer represents a more than 32 percent premium to Turquoise Hill’s close on Friday.
This decision came following Rio Tinto’s settlement with the Mongolian government in January of a long-running dispute over the $6.93 billion expansion of the Oyu Tolgoi project.
At present, Rio controls and operates the Oyu Tolgoi mine, one of the world’s largest known copper and gold deposits. The government of Mongolia owns 34%
In a statement released by the company it said the transaction would simplify the Oyu Tolgoi ownership structure, strengthen Rio Tinto’s copper portfolio, and reinforce its long-term commitment to Mongolia.
