Chinese miner completes study on Benguet gold-copper mine

Chinese miner completes study on Benguet gold-copper mine

Zijin Mining Group Co. Ltd. has completed its initial feasibility study on a gold-copper mine in Benguet province owned by Far Southeast Gold Resources Inc. (FSGRI).

China’s second largest gold miner is in the process of negotiating a final agreement, it said in a disclosure filed with the Shanghai Stock Exchange.

Listed local miner Lepanto Consolidated Mining Co. made a similar disclosure to the Philippine Stock Exchange Tuesday.

Zijin Mining Group Co., Ltd. is a leading Chinese gold, copper and nonferrous metal producer and refiner listed on the Hong Kong Stock Exchange.

In November 2007, the company entered into a memorandum of understanding with Lepanto, under which Zijin will acquire 20% of FSGRI from Lepanto for $70 million.

Lepanto, which also operates the Victoria and Teresa gold deposits in Mankayan, Benguet, owns 60% of FSGRI. Lepanto officials declined to provide more details of the study.

In 2006, Zijin was the largest Chinese gold producer and among the top 10 gold producers worldwide.

Since Dec. 20, 2005, Zijin Mining has been part of the Dow Jones Offshore 50 index on the Hong Kong Stock Exchange.

Zijin Mining Group owns eight gold and copper mines. It operates the Zijinshan Gold Mine, the largest open pit gold mine in China, and three other gold mines in production. The company also owns copper and gold mines that are under construction.

In addition to the development and exploration of mining resources, Zijin Mining also provides services in geological studies and mining consulting.

In early 2007, Zijin led a group of Chinese mining companies that bought a controlling stake in Monterrico Metals, breaking into the South American mineral market. The Zijin consortium now owns 80% of Monterrico.


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