Friday, 23rd March 2007 (2086 views)

China's second largest gold miner, Zhaojin Mining Industry, has reported that last year was a bumper one in terms of profits in the wake of strong gold prices.

Zhaojin saw its profits double during 2006 as its net income increased to 351.2 million yuan (£23.1 million), a company statement explained and the firm also accounted for seven per cent of China's overall gold production.

Gold output at Zhaojin rose by 25.4 per cent last year, bringing the total amount of ounces produced to 503,095 and, according to Lu Dongshang, Zhaojin Mining chairman, speaking last November, the mining company is focussed on further production gains as well as acquisitions.

Speaking in general terms about the growth of the gold industry in China, Chris Ding, an analyst at China International Capital, explained to Bloomberg that "a positive outlook on gold prices will sustain the profit growth of the miners".

Mr Ding went on to express his opinion that Zhaojin Mining would see its gold production boosted next year and 2009 by the two mines at Hainan and Xinjiang.

Last month, Chinese business paper The Standard reported that aside from Zhaojin, Zijin Mining had also seen rising profits of late.

 

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