Vancouver-based Ivanhoe Mines Ltd. (TSX:IVN) has hit back against two Australian newspapers it claims published “false and misleading” statements about its flagship Oyu Tolgoi project.
In a release issued Wednesday morning, Ivanhoe said the Business Spectator and The Australian made “curiously similar” claims in September 14 and 15 publications that the company had delayed the selection of an arbitrator to evaluate a Rio Tinto plc (NYSE:RTP) complaint.
In July, Rio Tinto filed arbitration against Ivanhoe saying the Vancouver company’s shareholders’ rights agreement breached a private placement deal the companies signed in 2006 (See “Shareholders’ plan threatens Ivanhoe-Rio Tinto partnership” – issue 1082; July 20-26).
In Wednesday’s release, Ivanhoe said it and Rio Tinto had previously reached an agreement on an arbitrator, but were unable to proceed because of a “conflict” the arbitrator identified with a Rio Tinto-associated company. Ivanhoe added that it and Rio Tinto have reached a new tentative agreement for an independent arbitrator.
But that is not all the Vancouver company took issue with in the Australian print media.
Ivanhoe also said The Australian’s allegation that Ivanhoe substantially underestimated the capital cost of its massive Oyu-Tolgoi copper-gold project was “glib editorializing.”
Ivanhoe said in a release, “None of the instances of conjecture and blinkered speculation presented as facts were checked with Ivanhoe Mines in advance of publication.”
At press time, Ivanhoe’s shares were up $0.31 to $20.25.