UPDATE 1-Ivanhoe approves 2011 capital outlay for Oyu Tolgoi

* Says board has approved $2.3 bln capex budget for 2011

* 2011 to be peak yr for construction work at Oyu Tolgoi

TORONTO, Dec 13 (BestGrowthStock) – Ivanhoe Mines (IVN.TO: ) said on
Monday its board has approved a $2.3 billion capital outlay in
2011 to develop the first phase of its massive Oyu Tolgoi
copper and gold project in southern Mongolia.

Oyu Tolgoi is one of the world’s biggest untapped
copper-gold deposits. Development was delayed for years due to
complicated royalty negotiations between Ivanhoe and the
Mongolian government. [ID:nSP495396]

The project is 34 percent owned by Mongolia and 66 percent
owned by Vancouver-based Ivanhoe, which is developing it with
mining giant Rio Tinto (RIO.AX: ) (RIO.L: ). Last week, the two
companies put aside a spat and agreed on a new interim
financing plan for the $6 billion project. [ID:nSGE6B70F7]

Ivanhoe, led by mining financier and colorful dealmaker
Robert Friedland, said 2011 will be the peak year for
construction at Oyu Tolgoi — the mine is expected to begin
initial production in 2012.

The company projected capital required for phase one from
Jan. 1, 2011, to the commissioning of the ore processing plant
in the second half of 2012 at $3.5 billion. It expects to spend
an additional $1 billion on the project between commissioning
and commercial production, expected to begin in the first half
of 2013.
($1= $1.01 Canadian)
(Reporting by Euan Rocha; editing by Janet Guttsman)

UPDATE 1-Ivanhoe approves 2011 capital outlay for Oyu Tolgoi