CNGG Seeks More Mines Overseas

BEIJING, Jan. 15 -- China National Gold Group Corp (CNGG), the country's second largest gold producer, will transfer several gold mines as assets to its Canadian subsidiary Jinshan Gold Mines this year and acquire more mining assets abroad through Jinshan, the China Daily reported Thursday.

The company was in talks to buy several gold mines overseas, but declined to give details, the newspaper quoted Song Xin, vice-president of CNGG, as saying.

 "Our target investment destinations include neighbors such as Russia and Mongolia, as well as North America, Australia and Africa," said Song. "Jinshan will serve as an overseas investment platform, because as a company listed on the Toronto stock exchange, it has easier access to foreign investors and mining assets."

CNGG prefers low risk and mature projects in terms of foreign investment. "We are only interested in operating mines, and will not get involved in grassroots risk exploration projects," the newspaper quoted Wu Zhanming, capital operation manager at the group, as saying.

CNGG added 92.4 tons of new resources to its 1,200 tons of gold reserves in 2009, entrenching its position as the country's largest gold reserves holder. It produced 123.19 tons of gold in 2009, up 37 percent from 2008, according to the newspaper.