Rio pays $1.31 billion for Turquoise Hill

Mining giant Rio Tinto has paid more than $1.31 billion for 510 million Turquoise Hill shares under a rights issue, clearing the slate as it develops the Oyu Tolgoi mine in Mongolia.

Rio said the $CAN1.292 billion ($1.31 billion) purchase represents 50.8 per cent of the shares offered under the rights offering of $CAN2.53 per share.

"Turquoise Hill will be using a portion of the funds it receives under the rights offering to repay all amounts outstanding under the $US1.8 billion ($A1.99 billion) interim funding facility and the $US600 million ($A664.53 million) secured bridge funding facility each provided to Turquoise Hill by Rio Tinto," Rio Tinto said in a statement.

The company said the acquisition of additional common shares under Turquoise Hills rights offering conformed with its agreement with Turquoise Hill in August.


Rio Tinto said it does not plan to acquire additional securities of Turquoise Hill.

In August last year Rio agreed to provide $US600 million in bridging finance to Turquoise Hill Resources to refinance outstanding amounts under a $US225 million short-term funding facility.

In October Rio said copper production at Oyu Tolgoi was producing at design capacity as it ramps up to full capacity.

Rio shares were 48 cents, or 0.76 per cent, lower at $63.03 at 1125 AEDT.