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Thursday, 19th May 2005 (3917 views)

The Xinjiang Gold Administration has highlighted its commitment to developing the local gold mining industry in China this year.<br/><br/>According to Xinjiang it is now moving forward after 2004's busy year of prospecting and exploration by Chinese and foreign companies.<br/><br/>Mr Xie, a director at the organisation, told Interfax: "There are two major reasons pulling up production growth. First, global gold prices remained high last year; second, Xinjiang issued favourable policies such as lower taxes for gold producers.<br/><br/>"In addition, both the central and Xinjiang governments have paid more attention to the development of the gold industry in Xinjiang."<br/><br/>The area of Xinjiang has not yet been prospected for gold property, so miners are likely to be drawn in by huge potential in the area.<br/><br/>Gold output in 2004 reached 5300 kg in Xinjiang, increasing 42.8 per cent year on year.<br/><br/>"So far, foreign companies are allowed to apply only for exploration rights. If they find any valuable deposits, they can choose to sell their exploration rights to domestic gold mining companies, or launch further negotiations to set up additional exploration and eventual production with Chinese partners," Mr Xie explained.<img alt="track" src="http://directnews.dehavilland.co.uk/dn.gif?feedid=196&itemid=8538415"/>

 

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