Gold News

Buying gold 'leads Chinese company to further investment'

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.

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...


See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn



Market Fundamentals