Hi All,

China to Buy Gold Mines:

http://kingworldnews.com/chinas-plan-b-is-about-to-shock-the-world-and-the-gold-market/

Paragraph of interet at the very bottom of the article.

"China Will Need to Buy Gold Mines
China’s Achilles heel is that its gold mines will run out of reserves by 2020 so the mantle as the world’s largest producer will not last too much longer. China will need to invest. Many of its producers have short lived reserves and are struggling to replace those reserves. For this cohort of firms, deeper seated reserves could be exploited by western exploration techniques and production know-how. However, China is overly protective of its producers. And often, Chinese management lack the entrepreneurial thinking since the state owned players tend to be risk averse. In the end, the most important thing is that China will need to change its outlook.

Meantime, North American reserves can last well into the next two decades. We expect Chinese producers to expand overseas, buying up reserves in the ground which are valued at historically low levels. Currently some 13 percent of the world’s reserves are in the ground and valued at a fraction of their replacement or even exploration value. We believe, China’s search for gold assets has only just begun, as it secures future supplies. So far China’s acquisitions have been domestic, reflected recently by Eldorado Gold’s selling its Chinese mines for $900 million to local players. We expect China’s acquisition of oversea producers will pick up with an emphasis of using their capital to develop the big the in-situ, capital extensive projects. China has a Plan B. "

Regards,

Gold Finch