Wednesday, 18th June 2008 (565 views)

The China Gold Association has said that the opportunity to develop the country's largest bullion deposit is attracting four major bids, according to Bloomberg.

Zijin Mining, China National Gold Group, Western Mining and Shandong Gold Mining are all competing to develop the 308-metric ton deposit.

The site is in the western province of Gansu.

China is the second largest consumer of gold, reported the news agency reported, with demand increasing by 23 per cent in 2007.

"China National Gold may be the top pick to develop the project because it's a big state-owned gold miner and enjoys a good relationship with local governments,'' said Wang Feng, a Shanghai-based analyst at Everbright Securities.

More than ¥6 billion (£447 million) will be needed to bid for the right to develop the deposit, he said.

China National Gold is a state-owned enterprise that reports directly to the government which is also its sole shareholder.

 

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