08/15/2012 07:25 EDT | Updated 10/15/2012 05:12 EDT

Renamed Ivanhoe Mines posts US$285.9-million loss, Oyu Tolgoi cost above target

VANCOUVER - The company formerly known as Ivanhoe Mines Ltd. had a US$285.9-million net loss in its second quarter as it worked toward getting a massive copper and gold mine in Mongolia into commercial production next year.

The loss at Turquoise Hill Resources (TSX:TRQ) was equal to 35 cents per share and compared with net income of $600,000 or zero cents per share a year earlier.

The Vancouver-headquartered company, now majority-owned by Anglo-Australian mining giant Rio Tinto PLC (NYSE:RIO), says the first phase of building the mine was 90 per cent completed by the end of June.

It says the final cost of Phase 1 is expected to be US$6.2 billion, which is three per cent over the initial budget, excluding the impact of foreign exchange.

Ivanhoe Mines adopted the new name Turquoise Hill this month.