Following Rio Tinto's 24 January announcement that it had increased its ownership stake in Ivanhoe Mines to 51%, from 49%, the Anglo-Australian company has informed the US Securities and Exchange Commission that it anticipated it would gain more than a majority of the seats on the Ivanhoe Mines board by seeking the replacement of a majority of the present roster of directors who were not appointed by Rio Tinto. The company also expected to seek the replacement of some of Ivanhoe’s management.
However Ivanhoe Mines Deputy Chairman Peter Meredith told shareholders today he expected the company’s 14-member Board of Directors will continue to maintain a majority of independent directors, in accordance with the 8 December 2010, Heads of Agreement signed by Ivanhoe Mines and Rio Tinto. he said the commitment to maintain an independent majority on the board applied irrespective of the number of directors Rio Tinto is entitled to appoint and is consistent with good corporate governance practices in the US and Canada where the company is jointly listed.
Ivanhoe Mines Ltd. explores for and develops gold, copper, uranium, and coal. The company operates in Mongolia, China, and Australia.