Central China Goldfields, CITIC unit sign gold mining pact

May 6, 2009 (China Knowledge) - Central China Goldfields PLC announced yesterday that it has inked a contract with CITIC Anhua's subsidiary Jiuquan Zhongan Mining Co Ltd for joint development of the former's Dong Mao Huo gold mine in Northern China, sources reported.

According to the agreement, CITIC Anhua will set up a mining and processing plant with a daily capacity of 500 tons, and will shoulder the capital expenditure and operating costs. The building of the plant will begin as soon as possible and mining will begin by September 2009.

CITIC Anhua, the mining arm of CITIC Group, a state-owned investment company, will also pay Central China Goldfields RMB 250,000 annually for the first six years to compensate for the latter's prior expenditures.

London-based Central China Goldfields said that the cooperation will quickly complete the near-surface gold project and put it into operation so that it can recoup its costs.

Central China Goldfields is engaged in mineral exploration and development in China. The firm's projects are Nimu Copper Project, Snow Mountain Gold Project and Dong Mao Huo Gold Project (DMH).