Friday, 20th June 2008 (536 views)

A bid for exploitation rights has been placed for the Yanghsan Gold Mine.

Zijin Mining Group placed the bid, according to China Knowledge.

Chen Jinghe, chairman of Zijin Mining, said: "The deal is profitable, and I believe it is also beneficial for our listed unit."

Three other companies are also bidding for the rights to the mine, Shandong Gold Mining, Zhaojin Mining Industry and Zhongjin Gold.

The Yangshan gold mine was discovered in 2007 in the north-western province of Gansu.

It is the largest gold mine in Asia and reportedly contains around 308 tons of gold, currently valued at over $9.75 billion, according to the business newswire.

Hou Huimin, vice president of China Gold Association, said that five major gold deposits were found in China last year including Yangshan, according to Bloomberg. The other four are in Tibet, Qinghai, Sizhuang and Baolun.

Bloomberg reported Wang Feng, a Shanghai-based analyst at Everbright Securities, saying he believes the bidders may have to spend around ¥6 billion in order to win the rights to the mine.

 

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