Commodity Online
BEIJING: In April, China announced that the country had increased its Gold reserves by 454t, to 1,054t. The news has been prompting bullion analysts to predict that China wants to become a super power not jut politically alone, but in gold reserves, mining and sales.

For several years, South Africa used to be the world's number one gold mining country. But these days, China is emerging as the top gold miner and producer.

So what is happening to the Chinese gold mining industry? Are the global gold mining leaders and bullion investment companies heading to Chinese provinces to mine gold? Is that the way China would now amass more gold reserves?

Read an interesting article from Commodity Online on the gold mining buzz in China:

There is no end to China’s race to the super power status — whether it is in industrialization or mining. In fact, China has left competitors far behind in gold mining field.

Now, China is the top gold mining country in the world with more and more mines being readied for production. Like in the case of agricultural commodities, for gold mining also, China is the right place to be in, if chief executives of some leading gold mining companies in the world are to be believed.

One major factor which goes to help China to achieve the mining super power status is cheap and easy availability of capital.

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According to Sino Gold Mining Ltd, which was the first foreign entrant to China’s gold sector in 1995, cheap and abundant debt financing on offer for the right projects is the driving force behind China’s success.

Sino Gold said it has got maximum benefit from the Asian superpower’s ready access to capital.

Experts said that Chinese Gold companies and the Chinese gold industry is undergoing a revolutionary changes and China will be a major catalyst in the field in the coming years.

Sino Gold had raised more than $175 million from Chinese banks at an interest rate of less than seven per cent to fund several projects.

These included its five million ounce Jinfeng mine — China’s second largest gold mine and Sino Gold’s flagship operation — and its one million ounce second mine, White Mountain.

Cheap access to capital is available in China for every company operating in China.

And in the coming days state ownerships will come down, access to capital will increase and those companies are going to get more and more confident, using their production base to expand outside China.

China, currently the largest gold producing country in the world, was highly prospective for the precious metal but under explored. About 10,000 gold deposits had been identified within its borders so far.

And while Australian gold production had steadily declined since 2005, China’s gold production continued to grow.

Sino Gold was moving toward developing its third gold mine, Eastern Dragon, where an initial 0.8 million ounce resource is expected to grow through near mine exploration.

Sino Gold is hitting its nameplate annual production rate of 180,000 oz at Jinfeng, up from 150,928 in 2008, and expects to encounter higher grade ore at depth.

So when you are asked which country is the hottest global destination for gold mining? China, South Africa or Australia? Undoubtedly, you can answer it is China that is attracting global gold miners these days.

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