Ivanhoe Mines Ltd. may need to realign projections and production timetables at its Oyu Tolgoi copper-gold mine project to accommodate the construction of a coal-fired power plant.

On Monday, Ivanhoe reported that construction at its Oyu Tolgoi mine in Mongolia will be 70 per cent complete by the end of 2011, with commercial production expected in the first half of 2013.

"Although construction of a power plant is expected as part of the Oyu Tolgoi project's future development, there is no provision for a plant in the current capital cost estimates for 2011 and 2012 and the financing that would be required is not contemplated as part of the company's current financing plan," Ivanhoe said in a statement.

Constructing the power plant will not only increase initial capital expenditure of Oyu Tolgoi, but will also derail its commercial production.

Ivanhoe earlier sat with the Chinese and Mongolian governments to discuss possible power importation from China for the Oyu Tolgoi by the third quarter of 2012. It is unclear if the three parties had agreed to any arrangements. Ivanhoe acknowledged that constructing the coal-fired power plant in Mongolia is the best choice for the Oyu Tolgoi copper-gold mine project, albeit un-calendared.

Ivanhoe Monday announced earning profits of $7.3 million, or 1 cent per share, for the quarter ended Sept. 30 spurred by gains from its coal subsidiary and as settlement of notes receivable outweighed exploration costs.

The latest figures compared with a loss of $24.9-million or 5 cents a share a year ago.

Revenue grew to $60.5 million from $6.6 million the past year.

Ivanhoe likewise reported spending $2.2 billion on Oyu Tolgoi in the first nine months of 2011, slightly over budget allocations of $2.1 billion. Construction works was 54.4 per cent complete as of the end of September.

The Oyu Tolgoi is 66 per cent owned by Ivanhoe, with the rest owned by the Mongolian government. Ivanhoe is 49 per cent owned by Anglo-Australian mining firm Rio Tinto PLC.

Touted to become one of the world's five biggest copper mines, Oyu Tolgoi is expected to produce an average of 450,000 tonnes of copper and 330,000 ounces of gold per year over the next 10 years. It is projected to account for one-third of total Mongolian GDP by 2020.

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