China to Maintain Golden Focus

By Robin Bromby
The Australian, Sydney
Monday, April 9, 2012

Our source is quite clear on one thing: The move on NGF is just the beginning. China wants more gold and it doesn't want to pay full market price for it (as it doesn't for any mineral) so it will be looking to pick up more Australian gold producers and add the yellow metal to its existing central bank gold pile.

Not something the Perth Mint will be happy to hear.

Chinese interests took control last year at Laverton-area goldminer A1 Minerals, now renamed Stone Resources after its Hong Kong parent.

That parent took an unsuccessful lunge also at Crescent Gold. Last year a Chinese consortium spent $US79 million on a 17.7 per cent holding in Gold One International.

Chinese interests spent $80 million to buy the controlling stake in Australian-owned Zara gold project in Eritrea and Yunnan Tin owns 12.3 per cent of YTC Resources, which is developing the Hera goldmine near Cobar in New South Wales.

And Sovereign Gold, which featured here two weeks ago for uncovering long lost shafts on the Rocky River-Uralla goldfield in northern NSW, has subsequently signed up partner Jiangsu Geology & Engineering to pay $4 million to buy 30 per cent of two tenements.