How China’s resources deals have literally turned into a gold mine
Chinese gold producers, after a buying spree for mines abroad, are cashing in as the metal’s price goes sky-high Chinese gold producers have embarked on a wave of overseas acquisitions in recent years, snapping up mines in countries ranging from Kenya to Colombia. Now, they are reaping the rewards as sky-high gold prices lift their earnings. The market swings have been a windfall for China’s mining firms, with several companies reporting triple-digit increases in profits. Zijin Gold International, a unit of the country’s largest mining firm by market capitalisation, estimated its net profits attributable to shareholders surged 169 per cent to around US$1.4 billion in the first half of the year, according to a filing with the Hong Kong stock exchange last week. Established in 2007, the company owns gold mines across several continents, with deals in countries such as Tajikistan, Kyrgyzstan, Australia, Guyana, Colombia, Suriname, Ghana and Papua New Guinea. In the past year, it has acquired another two mines – one each in Ghana and Kazakhstan – both of which have already turned profitable, the filing said.
