Financial Post: Ivanhoe sells SouthGobi stake to China for $889-million

Ivanhoe Mines Ltd. has struck a deal to sell its majority stake in SouthGobi Resources Ltd. to Aluminum Corp. of China Ltd. (Chalco) for as much as US$889-million. The move will turn effective control of SouthGobi’s Mongolian coal deposits over to the state-owned Chinese firm. For Ivanhoe, the move cleans up the company’s operating structure and gives it more capital to develop the US$6-billion Oyu Tolgoi copper-gold project, also in Mongolia. Ivanhoe owns almost 105 million shares of SouthGobi, or 57.6% of the company. To read the full article, click hereIvanhoe sells SouthGobi stake to China for $889-million

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