Rio contends with resource nationalism

09/09/2011 11:28:00

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According to media reports, a group of Mongolian politicians are trying to tighten the country’s grip on Rio Tinto Limited’s (ASX:RIO) and Ivanhoe Mines’ flagship mine in that country.

The mine will account for a third of Mongolia’s gross domestic product by 2020. Rio owns 48.5% of Ivanhoe, which in turn owns two thirds of the mine. The Mongolian government owns the rest. It’s rumoured Rio plans to take a controlling stake next year.

Rio Tinto posted a record first half net profit of $7.5 billion.