Is China to partner with Barrick and Newmont?

Finally rumours of a Chinese-Canadian gold partnership appear to be confirmed

In an interview yesterday, China’s state-owned gold mining company China National Gold Group Corp. hinted at potential partnerships in the pipeline with both Barrick Gold Corp. and Newmont Mining Corp.

Xin Song, president of China National Gold Group Corp. discussed his company’s search for opportunities in the gold and silver markets. “The growing strategy is very clear: We are going out looking at things globally,” he said through an interpreter. “We have a few opportunities, at different stages.”

China’s official gold consumption stood at 1,176 metric tons last year with production significantly lower at 428 metric tons. This deficit increases the appeal of overseas acquisitions.

On the subject of Barrack and Newmont, Mr Song said “Both sides are making an effort to co-operate in the future”.

Should China Gold be successful, an alliances could have either one or both of the Western miners working closely with China – the world’s largest consumer and producer of gold.

Mr. Song would not elaborate in any more detail on alliances with either company, except to say he was in the process of having some “very good conversations” with both Barrick and Newmont.

Both Canadian Barrick and Colorado-based Newmont have declined to comment.

 Previous Post

Meeting called to discuss replacement of London gold fix

Next Post  

Fat? How about some gold...