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China National Gold's gold reserve tops 1,200 tons

By Hao Yan (chinadaily.com.cn)
Updated: 2010-01-14 17:25

China National Gold Group had more than 1,200 tons of gold as reserve as of Dec 31, 2009, and its asset injection into its listed arm, Zhongjin Gold Co, is expected to raise its annual profit by 200 million yuan ($29 million), China Business News reported on Thursday.

Song Xin, deputy general manager of China National Gold, told the newspaper that the company added 92.4 tons of gold in 2009 to its reserve, which had increased by four times compared with the end of 2006 and was the largest in China by the end of 2009.

Also, the company is trying to obtain the mining rights of a gold mine in the northwestern province of Gansu, which, if successful, can add more than 80 tons of gold to its reserve, Song said.

According to Li Yueqing, secretary of the board of Zhongjin Gold, China National Gold Group injected assets into six enterprises under the listed subsidiary and bought a gold mine in 2009. "These measures boosted Zhongjin Gold's profit by more than 200 million yuan," Li said. "The group company will also inject the principal business of gold mining into the listed company, which is a long-term job."

China's gold output as of November 30, 2009 had surpassed the total of 2008, and was expected to hit 310 tons, according to Zhang Bingnan, vice president of the China Gold Association. China's gold outputs in 2008 ranked first in the world with 282 tons and sales ranked second with 396 tons.