Zhongjin Gold Co., the listed unit of China’s biggest producer of the precious metal, and Shandong Gold Mining Co. are competing for two mining companies in the eastern province of Shandong to boost their resources.
Zhongjin Gold plans to bid for Shandong Shengda Mining Co. and Shandong Tiancheng Mining Co., which are auctioning their assets, the company said today in a statement to the Shanghai stock exchange. Shandong Gold is seeking controlling stakes in both the companies, it said yesterday. Shares of Shandong Gold and Zhongjin Gold were suspended from trading.
Chinese gold producers are vying for domestic and overseas mining resources as the nation is set to displace India this year as the biggest gold user. Gold has rallied for 11 years on rising investment and jewelry demand, led by consumers in Asia.
“The targeted assets have large gold resources,” said Peggy Ye, a Shanghai-based analyst with SWS Research Co., without giving details.
Shengda also produces iron ore, with output at its Dazhuohan mine exceeding 500,000 metric tons of concentrate a year, according to the company’s website. Tiancheng, a gold producer, doesn’t provide information about mines on its website.
Gold prices for immediate delivery climbed 0.1 percent to $1,677.73 as of 3:12 p.m. Shanghai time. The metal has gained 7.1 percent this year.