Shandong Gold Mining Group plans to increase its production of ingots and to grow through inorganic acquisitions abroad

Shandong Gold Mining Group plans to increase its production of ingots and to grow through inorganic acquisitions abroad, a company told China Daily on Thursday.

The producer is planning bullion gold production by 20 percent to 30 tonnes this year to cash in on growing demand for the yellow metal in China, the source said on condition of anonymity.

Bullion investments have risen sharply in recent months that the real estate and capital markets turned down.

Shandong Gold also plans in the mining assets abroad to invest in South America and especially in natural resources-rich countries like Canada and Australia, "he said.

The company will seek to invest in new regions such as Argentina, Chile and Brazil, particularly copper, zinc and lead resources and their presence in gold projects in Canada and Australia.

Shandong Gold has been active in carrying out domestic acquisitions. His arm listed Shandong Gold Mining Co. Ltd. last month paid 166.6 million yuan (24.4 million), the remaining stake of 49 percent not in Qingdao Xinli Mining Industry Co. has acquired. Ltd to increase gold reserves.

However, the company has so far only one foreign takeover of a mining project in Venezuela. The project was withdrawn and sold to the government of Venezuela, said the source.

The plan to return to the Clock a serious intention to buy overseas shows to expand the company's global presence with more resources.

China, which has dominated the world resource market transactions in 2009, more investment in resources overseas this year, said Lee Poh Tan, global law firm Baker & McKenzie LLP.

She said her company has seen about Chinese investment in Latin America and Africa have the resources through acquisitions and construction of local infrastructure.

"We have more and more interests have seen Chinese companies to invest in Latin America for resources such as iron ore, copper and lithium, and we expect a growth of 30 percent for transactions between China and Latin America this year," said Erik Bethel, Chief Executive Officer SinoLatin Capital, the investment bank's primary focus is exclusively on cross-border transactions between China and Latin America.

China's largest gold producer and third largest consumer of gold in the world, it is expected that the production of gold report this year, according to Zhang Bingnan, Vice-President of the Association of Chinese gold.

Gold production in the nation in 2009 increased to 11.3 years per cent on year to 313.9 tonnes and represented 13 percent of global gold production last year.

In the first four months of this year, gold production reached 99 tonnes, up 5.6 years per cent over the previous year. The growth in gold production is still the fastest in the world because of strong investor demand.

Shanghai-listed Shandong Gold Co. Ltd. reported its net profit rose 11.86 percent in 2009 due to increased production of 17.67 tons and the rising gold price.