Redefining Shareholder Value

Chapter 3

Case Study—Turquoise Hill Resources, Previously Known as Ivanhoe Mines

Introduction

Turquoise Hill Resources (TRQ: TSX, NYSE & NASDAQ), previously known as Ivanhoe Mines, is an international mining company focused on copper, gold, and coal mines in the Asia Pacific region. The main asset of the company consists of 66 percent interest in Oyu Tolgoi, one of the world’s largest copper–gold–silver mines. In 1999, the exploration project at Oyu Tolgoi was discontinued by BHP Billiton because of budget cuts, and the Oyu Tolgoi exploration concession was offered for joint venture. Furthermore, in May 2000, Ivanhoe Mines signed an option agreement with BHP Billiton for 100 percent interest in the Oyu Tolgoi Concession (Turquoise Hill Resources ...