Shaanxi Province to boost gold industry

Oct. 26, 2009 (China Knowledge) - Shaanxi Province will set up a company named Shaanxi Gold Group Ltd in a bid to boost the gold industry in the province, which is rich in the metal.

As an important gold production base in China, Shaanxi has proven gold reserves of over 300 tons, the fifth largest among all provinces across the country. Gold output of the province ranks sixth, following Shandong, Henan, Fujian, Inner Mongolia, and Hunan.

The new company, to be built with the help of the Shaanxi Nonferrous Metals Holdings Group, will play a leading role in the technological renovation of the gold industry, according to the statement released at a regular government meeting.

The provincial government also calls for more merger and acquisitions within the province so as to optimize the industry structure.

In the first half of this year, China produced a total of 146.51 tons of gold, representing a year-on-year increase of 13.49%. It is estimated that China will produce around 290 tons of gold and explore 800 tons of gold reserves for the whole year.