By Zhang Boling
Caixin Online
At every juncture, conversations among gold mining executives at the recent China Mining Conference in Tianjin turned toward a single topic: The quest for gold mines overseas.
Owning a mine on foreign soil “primarily can increase (a mining company’s) gold reserves and make it more self-sufficient in terms of raw materials, to improve profitability,” said Zhang Bingnan, secretary-general of the China Gold Association. “Second, gold prices are expected to go higher.”
And executives at the November conference could point to a pair of recent deals as sterling examples of opportunities taken – and success for each company. In August, Jinyu (H.K.) International Mining Co., a subsidiary of Zijin Mining Group Co. Ltd., purchased a more than 50 percent stake in a valuable Australian mine.
Zijin’s deal for Norton Gold Fields Ltd., one of the largest in Australia, was the first-ever buyout of a major overseas gold mine by a Chinese company. Terms were not disclosed.