BEIJING (Reuters) – Zhaojin Mining, one of China’s biggest gold miners, aims to double production of the precious metal as early as 2024 on the back of overseas acquisitions and may look for deals below $500 million, the head of its international arm said.
Shandong-based Zhaojin currently produces around 650,000 ounces (18.43 tonnes) a year of gold, Leo Zhao, managing director of Zhaojin International Mining Co, said at a Global Mining Association of China seminar in Beijing on Thursday.
“Our target in the next five to eight years is … 1.3 million ounces per annum from China and global projects,” Zhao said, noting that half of that output would be from overseas, versus almost zero at present. “It’s challenging but it’s an exciting strategy,” he added.
China’s miners, the traditional drivers of M&A in the gold sector, have made no overseas gold mine acquisitions so far in 2019, according to Refinitiv Eikon data.
However, Zhaojin earlier this month agreed to set up a joint venture with Australia-based PCF Capital Group that will identify potential M&A opportunities there.
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