The gold price
Buying gold 'leads Chinese company to further investment' - 8 March 2008
China's Zhongjin Gold Corporation is planning to buy a gold mineral company from the Shaanxi province in an attempt to boost its reserves.
The company looks set to pay 900 million yuan ($126.6 million) for a 90 per cent stake in the mineral firm, which will see Zhongjin take over the Shaanxi firm's proven 81-ton deposit.
According to AFX, the deal is still pending approval from regulators, with the Shanghai Stock Exchange-listed Chinese firm looking to add to the eight smelters and mining locations currently in its operations.
Reuters has suggested that the move is in part a reaction to record gold prices that it claims has encouraged mining firms to expand their operations where possible in order to reap the best from a buoyant gold market.
Zhongjin's own net profit reportedly increased by 50 per cent last year as a result of an increase in gold prices and demand, Reuters claims.
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The company looks set to pay 900 million yuan ($126.6 million) for a 90 per cent stake in the mineral firm, which will see Zhongjin take over the Shaanxi firm's proven 81-ton deposit.
According to AFX, the deal is still pending approval from regulators, with the Shanghai Stock Exchange-listed Chinese firm looking to add to the eight smelters and mining locations currently in its operations.
Reuters has suggested that the move is in part a reaction to record gold prices that it claims has encouraged mining firms to expand their operations where possible in order to reap the best from a buoyant gold market.
Zhongjin's own net profit reportedly increased by 50 per cent last year as a result of an increase in gold prices and demand, Reuters claims.
Investing in Gold? For the cheapest, fastest & most secure route to solid Gold Investment simply register for a free, no-obligation account at BullionVault now...
Goldbug, 08 Mar '08
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