Wednesday, 26th January 2005 (3437 views)

Australian mining firm Sino Gold has secured funding to develop a key new gold mine in China, making it the first foreign company to do so.

The gold mine will be the second largest in China and is expected to produce around 180,000 ounces each year of the precious metal.

Nick Curtis, Sino Gold's chairman, told the FT: "Approval took place after a national interest debate [over foreign investment in the sector]. It should resolve any doubts people have as to whether foreign investment in the sector is welcome."

To help finance the mine, the company has secured a $40 million loan and hedged some of its gold reserves and resources.

The new Jinfeng deposit is situated within the Dian-Qian-Gui Golden Triangle, known as China's main gold producing region.

Although China is the fourth largest gold producer in the world, its mining sector has previously been mainly off-limits to overseas investors.

 

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