Gold Fields to build up its interests in China
November 11, 2003
By Reuters
Hong Kong - Gold Fields aimed to step up its investment in China's gold mining sector, Ian Cockerill, the chief executive, said at the weekend.
The company would like to acquire a majority stake and some operational control over one or more gold mining projects there.
"From what we have seen in China, the industry is well advanced," Cockerill said on the sidelines of the Hong Kong Gold, Diamonds & Precious Metals Investor Relations Workshop 2003 organised by South African Omega Investment Research.
He said more large western gold mining companies would invest in China, which he called the world's next major gold province.
Gold Fields' licensed pretreatment technology and mining expertise could be used in mining deep, complex deposits in China. Although the mines in China that he had visited were top quality, many Chinese miners had to date focused only on shallow mining.
Gold Fields already has a 50 percent stake in a joint venture with Australia-listed Sino Gold for exploration in Shandong province in eastern China. Gold Fields also holds a 10 percent stake in Sino Gold.
"The project is still in its early stages," said Cockerill of the Shandong joint venture.
"We are looking for sites for drilling."
Sino Gold and local authorities in the Guangxi autonomous region of southwestern China had a joint venture for a local exploration project.
"It's in the final stage of a feasibility study," he said.
Sino Gold had a gold mining joint venture in Jiangchaling in the central province of Shaanxi, he added. It produced about 90 000 ounces of gold a year.
Cockerill expected gold prices to continue rising beyond the threshold of $400 an ounce.
"The trend is still positive."
The latest price rise could slow down mergers and acquisitions in the global gold industry, as sellers' incentives weakened on the improved price outlook.
Spot gold opened higher in Asia yesterday as traders covered short positions after the weekend's bombing in Saudi Arabia.
Sapa-AP reports that gold opened an ounce at $384.15 yesterday in Hong Kong, up $4.10 from Friday's close. The price retreated somewhat to $382.85 at the London morning fix.
Gold Fields closed R3.29 up at R90.89 yesterday.
|
|
