Aug. 16 (Bloomberg) -- Ivanhoe Mines Ltd. a Canadian company controlled by billionaire Robert Friedland, may get investment from a Japanese carmaker to build a copper mine in Mongolia.

The Vancouver-based company is talking with Japanese and Chinese companies over possible investment in the Oyu Tolgoi copper and gold project, Ivanhoe chairman and president Robert Friedland said in a teleconference with investors. He did not identify the companies.

``We are dealing with one of the Japanese automakers, literally a household name,'' Friedland said. ``There are enormous quantities of Asian capital looking to finance Oyu Tolgoi.''

Vancouver-based Ivanhoe may spend as much as $1.3 billion to build a mine and smelter at Oyu Tolgoi, which lies about 80 kilometers (50 miles) from Mongolia's border with China.

Ivanhoe shares rose 26 Canadian cents, or 5.2 percent, to C$5.23 in Toronto at 12:48 p.m. They have fallen 49 percent this year, giving the company a market value of C$1.5 billion ($1.2 billion).

To contact the reporter on this story: Simon Casey in London at scasey4@bloomberg.net.

Last Updated: August 16, 2004 13:01 EDT