RIO

Mining giant Rio Tinto (RIO) is planning to sweep up the shares of Canadian uranium company Hathor Exploration as it acquires 93.76 per cent of the latter's shares. Rio Tinto currently owns 119.5 million Hathor common shares.

The mining giant offered a $C654 million takeover last year to the Canadian company, paying $C4.70 per outstanding common share. On December 22, Rio Tinto extended its offer until January 6, 2012 after it acquired 87.26 per cent of Hathor's shares.

Rio Tinto (RIO) has won the poison pill challenge set by Ivanhoe Mines that refrains the Australian miner to increase its stake in Ivanhoe. After 18 months of dispute, an arbitrator decided that Rio Tinto may buy additional shares after its standstill agreement expires on January 18, 2012.

RioTinto (RIO) invests an additional $2.7 billion to complete the $3.3 billion modernisation of aluminium smelter in Kitimat. The project is designed to meet the increasing demand from the Asia Pacific Region.

The Kitimat project is going to increase the smelter's production capacity by more than 48 per cent to 420,000 tonnes a year. The $3.3 billion project is expected to be completed in 2014.

Global miner Rio Tinto (RIO) still sells everything it can produce but warns that customers are becoming increasingly cautious on the uncertainty of the outlook for the Europe and United States economies.

The global miner is still generating high cash flows as iron ore prices recovered recently except for aluminium prices which were below production costs.

Rio Tinto (ASX:RIO) is on target to meet its 2011 iron ore production and surpass last year’s record profit of US$14.32 billion. In its third quarter production report, Rio posted new quarterly records for iron ore sales and coking coal production.

Rio Tinto (ASX:RIO) and Ivanhoe Mines will keep their profits from the Oyu Tolgoi copper and gold mining project without the Mongolian government taking a higher stake.

Together with the two miners, the government last night issued a statement saying it will continue to support the existing investment agreement, wherein section 15.30 requires all three parties to consent to any amendments.

Rio Tinto (ASX:RIO) and Ivanhoe Mines said they are unprepared to renegotiate their investment in Mongolia's Oyu Tolgoi project. The two miners formally responded to a letter from the Mongolian government inviting them to a discussion of potential changes to the deal.

Ivanhoe and Rio also sent letters to the members of Mongolia's National Security Council requesting support for the 2009 standing agreement.

Mongolia wants to up its stake in Rio Tinto (ASX:RIO) and Ivanhoe Mines' Oyu Tolgoi copper project to 50 percent from 34 percent. But under the agreement with Rio, such an increase is possible only after 30 years.

"We have sent the proposal to Ivanhoe to renegotiate the timeframe for us to increase the government stake," said Mongolia's Minister of Mineral Resources and Energy Dashdorj Zorigt.

Rio chief executive Tom Albanese says demand remains strong for minerals even though it has slowed in the past six months. He also said the company would not be hit hard.

"Supply and demand conditions point to commodities markets and prices staying strong," he said.

"While there are signs of nervousness, lack of inventory in the supply chain suggests the impact of the current economic concerns on our business will be limited, unless of course the financial markets substantially deteriorate."