China’s Zijin Mining Buys Into Australian Gold Producer Norton Gold Fields (Aug 2012)

Chinese gold buying

WSJ MarketWatch: China’s Zijin buys Australia’s Norton gold fields

Notable Excerpts:

Zijin Mining Group Co. , China’s top gold producer by output, said in a statement Tuesday that its subsidiary has acquired more than 50% of Australia-listed Norton Gold Fields.

The bid gives the Chinese miner, which also produces base metals, tungsten and iron ore, a secure footing in the Australian gold market, the world’s second largest output source after China itself.

In its statement, Hong Kong- and Shanghai-listed Zijin said the acquisition would serve as a platform and learning experience, presumably for more such deals.

Zijin’s company secretary, Fan Cheung-Man, last September said the company was eager to expand its presence overseas and secure more gold reserves.

Zijin has a market capitalization of more than $12 billion and is likely to refine 50 metric tons of gold in 2012.

China is the world’s largest gold producer, with annual output reaching about 360 tons. However, its consumption was roughly double at about 761 tons last year.

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