Zijin Mining bids for Yangshan Gold Mine
Zijin Mining Group Co<601899><2899>, China’s largest gold producer, has offered a bid for exploitation right of Yangshan Gold Mine, sources said on Thursday.
Preparation work is sufficient and detailed, sources cited Chen Jinghe, chairman of Zijin Mining, as saying, and the deal is expected to be finalized as early as next Wednesday.
“The deal is profitable, and I believe it is also beneficial for our listed unit,” said Chen.
Another three companies, namely Zhaojin Mining Industry Co, Zhongjin Gold Co., Ltd and Shandong Gold Mining Co, also reportedly joined the bid.
However, neither the three companies nor the Gansu provincial government could be reached for comments at the moment.
Yangshan Gold Mine, founded in 2007 in northwest China’s Gansu province, is the largest gold mine in Asia and the sixth in the world. It contains at least 308 tons of gold in reserve with the high grade “96″ vein, valued at over US$9.75 billion based on the current gold price of US$893.5 per ounce.
The mine will have an annual output of 2 to 5 tons with an estimated profit of RMB 300 million each year, predicted by analysts.
Tags: gold