After the financial crisis, China's largest gold company Zijin Mining (601899.SH) has been trying to find overseas, "buy the dips" the opportunities, most recently at last won a gold mine - the Canadian mainland China Mining Limited (hereinafter referred to as "mainland Mining" ) 12.8% stake, but they are awful hard-won acquisition Querang Zijin Mining and Jinchuan Group, took place between the "unpleasant" things.

Jinchuan Group, China Mining had already a major shareholder and holds approximately 12% of the shares. October 21, Jinchuan Group Vice President Zhang San Lin in an interview, said that Jinchuan Group against the mainland's largest mining industry did not seek shareholder approval on the introduction of Zijin Mining.

Yesterday, at the China International Mining Conference gap, vice chairman of Zijin Mining Lanfu Health told CBN reporters: "things are not as they (the Jinchuan Group) said, Not only that, Zijin Mining also plans to further acquire stake in China mining, orfrom the present equity structure, it is difficult to obtain mining rights. "

"The company has informed the Jinchuan"

Things due October 10, Zijin Mining's announcement that the company through its wholly owned subsidiary of Golden Island Resources (BVI) Limited to 1.07 Canadian dollars a share subscription continental mining shares of common stock of approximately 2112, the total amount of about 2260 million yuan, accounting for issued share capital (including ordinary shares and preference shares) and 12.8%,became the largest shareholder of mining.

Mining in British Columbia, Canada, mainland China, the registered address of Vancouver, British Columbia, Canada, the company's main asset is located in Tibet Xietongmen gold and copper. Shares of the Company TSX Venture Exchange in Toronto, Canada and the U.S. OTC Trading System (code "KMKCF") traded.

The notice is published, lead to strong dissatisfaction with Jinchuan Group. Jinchuan Group believes that the mining companies as the mainland's largest shareholder, did not know in advance Zijin Mining will enter.

"Continental Minerals as a listed company, all things are in accordance with Exchange rules to run." Lan Fu-sang, told reporters that China had issued mining to the Jinchuan Group e-mail, and had received an automatic reply e-mail.

Lan Fu-sang, said: "The mainland did not notify the Mining and Zijin Mining to issueshares, it is because both sides signed a confidentiality agreement, prior to the announcement, is not announced, but it is in line with exchange rules."

This year, April 28, Jinchuan Group, China Mining had issued a tender offer of shares,hoping to buy the mainland and mining, but was not the Board agreed.

What kind of assets, so that the two companies had a dispute? According to theannouncement, the mainland, although foreign mining companies, but its main assets are located in Tibet Xietongmen gold and copper, xaitongmoin mine about 220 million tons of ore containing copper grade of 0.43%, copper 2.092 billion pounds; gold grade of 0.61 grams / ton, 4.31 million ounces gold.

Zijin Mining is very optimistic about these assets. "Mainland China Mining time is not long, but done very well, has now completed the feasibility study report, and received permission from Ministry of Environmental Protection." Lan Fu-sheng.

For further Holdings

Zijin Mining to enter, based on the current capital structure, and Zijin Mining China Mining holds 12.8% stake in Jinchuan Group holds 10.92% stake in mainland China is still the foreign holders of a majority stake in mining.

According to October 2007 the State Development and Reform Commission and the Ministry of Commerce jointly issued the "Industrial Catalog for Foreign Investment,"clearly limits foreign investment in exploration and development of gold and other precious metals projects in China, after foreign-funded enterprises has received the prospecting and mining rights if you want to gain further would be very difficult.

CBN reporter learned from the National Development and Reform Commission, in dozens of foreign exploration companies in China Development and Reform Commission to review the current gold mining rights in China to obtain foreign (Sinoforeign cooperative) enterprise, only Guizhou Jinfeng Gold Corporation 4.

China Mining could not escape such a fate, if the controlling power is still controlled by foreign investors in China, is almost impossible to obtain mining rights. "It is because of this, we go to." Lan Fu-sheng.