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Ivanhoe Australia's Osborne Project to Ship First Copper, Gold

By Robb M. Stewart MELBOURNE--Ivanhoe Mines Ltd.'s (IVN) Australian unit will make its first shipment of copper and gold from its Osborne project in northwestern Queensland to an Asian smelter on Friday. Ivanhoe Australia Ltd. (IVA.AU) in a statement valued the copper concentrate around A$15 million and the gold at A$5 million. The 10,600 wet metric ton shipment of concentrate has been loaded and is expected to leave Townsville Friday. Ines Scotland, who was last week named interim chief executive following the sudden resignation of Peter Reeve, said the start of cashflow from Osborne is an important development for the company. "We are planning another three similar shipments this year followed by full production next year," Ms Scotland said. The project recently poured its first bar of gold dore, weighing about 9 kilograms. First production of copper and gold at the site began in March. Ivanhoe Australia is 59% owned by Ivanhoe Mines, which in turn is majority owned by Rio Tinto PLC (RIO). Write to Robb M. Stewart at robb.stewart@wsj.com

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