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Friday, 21st January 2005 (4175 views)

Sino Gold has secured a £21.4 million loan to build China's second-largest gold mine, it has announced.<br/><br/>The Sydney-based firm was granted a much sought-after Government project permit rarely allocated to foreigners, which gives it the go-ahead to begin work on the Jinfeng lode site in south-western Guizhou province.<br/><br/>Sino, already the only foreign company mining gold in China, said it had completed the project financing facility, jointly underwritten by Standard Bank London and Bayerische Hypo-und Vereinsbank.<br/><br/>Gold mining in China has largely remained closed to outsiders, but the new deal will go some way towards changing that.<br/><br/>Sino chairman, Nick Curtis, told the New Zealand Herald: "The gold-mining sector is almost the last sector to be reformed.<br/><br/>"Mostly because until recently it was virtually 100 per cent state-owned . . . We are at the forefront of opening the mining sector."<br/><br/>He added: "There were several local groups lobbying that it was inappropriate for this deposit [Jinfeng] to be in a foreigner's hands," he said. <br/><br/>"The government is now making it apparent those pressures just don't work. The system is clear on that."<br/><br/>Jinfeng is expected to produce about 180,000 ounces of the precious metal annually with first gold pour planned for mid-2006<img src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=7615278"/>

 

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