9:39 pmApr 15, 2013 Asia China’s Biggest Gold Producer Zijin...

9:39 pm
Apr 15, 2013
Asia

China’s Biggest Gold Producer Zijin Continues M&A Push


By Gillian Tan
China’s largest gold producer Zijin Mining Group Co. 601899.SH -4.06%, which is listed in Hong Kong and Shanghai with a market value of $10 billion, is continuing to execute its strategy of offshore expansion despite the precious metal entering a bear market.

The Wall Street Journal is reporting Tuesday that Zijin’s majority-owned Norton Gold Fields Ltd. NGF.AU -5.56% is set to announce the takeover of smaller Australian rival Kalgoorlie Mining Company KMC.AU -16.67% Ltd.

—Bloomberg News
Fujian province-based Zijin acquired 89.2% of Australia’s Norton Gold Fields last August, following a 229 million Australian dollar takeover (US$236.6 million) bid, with the intention to use the Perth-based company as a vehicle to complete further acquisitions. Australia is the world’s second-largest producer of gold, behind China.

“This is the first successful example of a Chinese enterprise taking over a large-sized gold mine [that is] in production,” Zijin said at the time, adding that the acquisition was in line with the company’s international development strategies.

Zijin’s chairman Chen Jinghe, who is also chairman of Norton Gold Fields, told Hong Kong media last month that the miner aims to complete up to two acquisitions this year, driven by depressed stock market valuations of peers.

http://blogs.wsj.com/moneybeat/2013/04/15/chinas-biggest-gold-producer-zijin-continues-ma-push/