by Shivom Seth, MineWeb.com
With inflation hitting a 2.6 year low and the central bank eager to do more to stimulate the economy. Gold buying is growing in China and its gold producers are getting in on the act
MUMBAI (MINEWEB) –
China may have overtaken India as the world’s top consumer of gold in the first quarter of 2012, but the country is not resting on its laurels. By buying gold mines, and accumulating the produced gold before it hits the international market, China is able to purchase gold below the spot gold price.
In the first successful example of a Chinese company taking over a large-sized gold mine that is in production, Zijin Mining Group Co, China’s top gold producer by output, said a subsidiary has bought more than 50% of Australia-listed Norton Gold Fields.
Jinyu International Mining, the fully owned subsidiary of Zijin Group, made a $190 million cash takeover offer in May for the Australian gold mine and then set about obtaining approval from Australian regulators