In December, another proposal to buy gold mines in the US made by China's Northwest Nonferrous International Investment Co Ltd offer was blocked because the target mine was in the proximity of a military base.

"With household income increasing, Chinese consumers are buying more jewelry and investing in gold assets. All of these are boosting gold demand," Zhang Bingnan, general secretary of China Gold Association told China Post.

Chinese miners are also eyeing overseas resources to expand their footprint to meet the rising domestic demand. The latest move is Zijin's $498 million takeover offer for Australian mining company Indophil Resources in November, a deal that will help secure copper and gold minig assets in Phillippines.

David Lew is a precious metals commentator with Commodity Online. You can contact him at info@commodityonline.com