Co-operation accord underscores China’s global gold market ambitions Deal signed in Vancouver at international gold – by Gordon Hamilton (Business Vancouver – June 23, 2014)

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Summit could increase investment in B.C.’s resource sector

China took an important step June 18 toward playing a larger role in global gold markets that could lead to more investment in British Columbia’s mining sector, according to the head of the country’s gold mining association.

Xin Song, chairman of the China Gold Association, said a co-operation agreement signed in Vancouver between the association and the World Gold Council (WGC) is a sign of China’s determination to become a more active player in the global gold industry. China’s emergence can be expected to have an impact on the B.C. mining sector, he said.

The accord between the Chinese association and the gold council, which represents the world’s largest mining companies, was the highlight of a daylong gold summit on the world’s most valuable metal. It’s the first time the London-based gold council has held such a meeting in North America.

“Why in Vancouver? Because Vancouver serves as the gateway to Asia and the Pacific and is a mining capital,” said Song. “Signing in such a venue has international impact for us.” Song, who is also president of China’s largest gold company, China National Gold, singled out B.C. as a destination for investment.

“In B.C., there will be more investments, more projects. This way, we can promote economic development.”

He added that local employment and the development of local benefits are key issues for China’s miners when considering global investments.

Song said China has a policy of integrating its gold industry and gold market with global markets as part of its economic development strategy and its increasing desire to play a stronger role in global finance.

He added that gold has always resonated historically and culturally with Chinese people. But now China is taking it one step further by playing a larger international role in gold markets and gold mining.

A key aim, he said, is to build gold reserves to support the internationalization of the Chinese currency.

China emerged as the world’s largest gold producer seven years ago, and in 2013 it surpassed India to become the largest gold consumer.

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