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Wednesday, 24th December 2008 (1423 views)

Shandong Gold Mining has announced that it has signed an agreement with Chifeng Chaihulanzi Gold Mining to purchase a 74 per cent stake in the firm.

Under the terms of the deal, Shandong Gold will pay around 260 million yuan (£25.86 million) for the controlling stake in Chifeng Chaihulanzi, which is licensed to exploit gold in Chifeng City in the Inner Mongolia autonomous region of north China.

The Chaihulanzi mine reported net income for the first ten months of 2008 of 45.9 million yuan (£4.6 million), China Daily reported.

With a reserve of more than 1.6 million tonnes of ores at the end of 2007, Shandong Gold had previously stated that it hoped to increase its retained reserves, improve profitability and lower production costs through its investment in Chifeng Chaihulanzi Gold Mining.

Shandong Gold Mining, the third largest bullion producer in China, is listed on the Shanghai stock exchange.

Earlier this month, gold exploiter and processor Zhaojin Mining Industry reported a new reserve of 1,532kg of gold proved during the first three-quarters of 2008 at its Hedong gold mine.

 

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