CITIC Mining, a Chinese state-owned conglomerate will become Canada's Ivanhoe Mines’ biggest shareholder after billionaire Robert Friedland’s company agreed to sell a 20% stake for about $560 million. This has been a long-term relationship between Ivanhoe and CITIC, nearly 15 years in which the company was struggling with developing a copper/gold mine in Mongolia. As we know, there are a myriad of issues that arise when dealing with foreign countries laws, regulations, customs and best interest. This long-term relationship is a great example of how producers and countries can work together to match the demand required for future growth.
“In 2003, the original Ivanhoe Mines was grappling with the challenge of developing its vast copper-gold discoveries at the Oyu Tolgoi Project in southern Mongolia. Following extensive discussions, Ivanhoe and CITIC established a strategic alliance to cooperatively pursue a number of selected common interests in metals production and related technologies.”
There has been a great deal of revived enthusiasm for copper as we seem demand increasing particularly y becase of electric vehicle growth. Ivanhoe’s flagship Kamoa-Kakula project in the Democratic Republic of Congo – considered the most significant copper discovery in decades. The money will be put to good use in this project as China also has a strong appetite for copper, with consuming roughly 50% of copper a year.