Rio Tinto has closed the previously announced $3.1bn acquisition of the remaining 49% stake in Turquoise Hill Resources.
With the completion of the deal, Rio Tinto will now hold a 66% direct stake in the Oyu Tolgoi copper-gold mine in Mongolia. The remaining 34% stake in the Mongolian mine is owned by the state-owned Erdenes Oyu Tolgoi.
The acquisition closed after securing approval from the Yukon court in Canada as well as getting approved by the majority of the minority shareholders of Turquoise Hill Resources earlier this month.
As per the terms of the transaction, Rio Tinto has taken over Turquoise Hill Resources for C$43 ($31.5) per share in cash.
The deal was signed with Turquoise Hill Resources in September 2022, following Rio Tinto’s sweetening of its initial offer price of C$34 ($24.9) to C$40 ($29.3).
Rio Tinto chief executive Jakob Stausholm said: “Oyu Tolgoi is an outstanding asset with incredible people that will deliver significant long-term value for Rio Tinto and Mongolia.
“I would like to acknowledge the Turquoise Hill Board and management, under the leadership of Peter Gillin and Steve Thibeault, for their considerable effort and support over the years, working in partnership with Rio Tinto and the Government of Mongolia in developing Oyu Tolgoi into a world-class mine.”
Oyu Tolgoi is a combined open pit and underground copper and gold mining project, located in the South Gobi region of Mongolia.
The copper and gold mining project began operations in 2011, while the copper concentrator began processing mined ore into copper concentrate in 2013.
At its peak production, the Mongolian mine is anticipated to generate 500,000 tonnes of copper per annum from 2028 to 2036 through both open pit and underground operations.
