Friday, 27th June 2008 (559 views)

China National Gold has won the exploration rights for a gold deposit at Yangshan in the Gansu province of China.

The company submitted a winning bid of 2.18 billion yuan (£159.9 million) for China's largest gold deposit, Reuters reports.

Shandong Gold Mining Corporation, Zijin Mining Group and Zhaojin Mining Industry were among the other companies bidding for the exploration rights.

A source told the news provider: "The China National Gold group offered the highest bid and it was also ahead of other bidders in areas such as governance and technology."

The Jinchuan Group will become the joint venture partner of China National Gold at the site.

It will pay the gold mining company 40 per cent of the bid and will help develop the deposit, in accordance with the deal arranged by the government.

The sum will be around 870 million yuan.

Jinchuan Group is based near Yangshan and is a nickel miner.

Wang Feng, a Shanghai-based analyst at Everbright Securities, predicted the companies would have to bid more than six billion yuan in order to win the deposit, according to Bloomberg.

 

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