Shandong Gold Group

Shandong Gold Group is a state-owned Chinese gold mining company under the provincial government of Shandong. The company is the second-largest producer of gold in China by output and its publicly-listed subsidiary ranked #1,898 in the Forbes Global 2000.[1][2]

Shandong Gold Group
TypeState-owned enterprise
SSE: 600547
IndustryMining/Financial Services/Property Management
Founded1975
Headquarters
Jinan
,
Shandong, China
Key people
Li Guohong(Chairman)
ProductsGold/Nonferrous Metal
Revenue7.46 billion USD (2016)
Number of employees
12,793 (2015)
Websitehttp://www.sd-gold.com/

Corporate affairs

Shandong Gold Group is the parent company of Shandong Gold Mining, which is listed on the Shanghai Stock Exchange. Following a pact announced in September 2018 with Barrick Gold, the world's largest gold miner by output, both companies agreed to strengthen ties with each other by cross-investing up to $300 million in each other's shares, with Barrick Gold buy shares in Shandong Gold via the Shanghai Stock Exchange.[3] The cross-investment agreement followed the purchase of a 50% interest by Shandong Gold in Barrick Gold's Veladero mine in Argentina in April 2017.

As a Shandong provincial state-owned enterprise, the company is directly supervised by the Stated-owned Assets Supervision and Administration Commission of the Shandong Provincial Government.

The company is a member of the World Gold Council, a trade body that promotes the gold industry and promulgates social and environmental standards for gold mining.[4]

Operations

Domestic gold mining

The company primary gold mining and exploration activity are domestic. The gold production from its 12 domestic mines in Shandong, Inner Mongolia, Gansu, and Fujian account for 6.6% of national output.[5] A gigantic discovery was announced in September 2018 when the company found a site with at least 382 tonnes of gold worth an estimated $22 billion in the Laizhou-Zhaoyuan area of the Shandong Peninsula.[1]

International gold mining

In April 2017 Shandong Gold purchased a 50% interest in Barrick Gold's Veladero mine in Argentina for US$960 million and also formed a partnership to explore joint-development of the Pascua-Lama deposit. In May 2020, Shandong Gold entered into an agreement to purchase a gold mining project in Nunavut.[6][7][8] In October 2020, the Canadian government commenced a national security review of Shandong Gold's proposed purchase agreement in Nunavut.[9][10] The Canadian government rejected Shandong Gold's bid for national security reasons in December 2020.[11]

Non-gold businesses

The company has several non-gold related businesses including nonferrous metal, tourism and real estate. It has financial services subsidiaries in both China and Hong Kong (SD Gold Financial Holdings Group and SDG Asset Management (HK) Limited).

References
  1. Ye, Josh (March 31, 2017). "Chinese mining firm claims discovery of nation's largest gold seam". South China Morning Post.
  2. "Global 2000 Leading Companies". Forbes.
  3. Tang, Shihua (September 27, 2018). "Shandong Gold, Barrick Plan to Cross-Invest up to USD300 Million". Yicai Global.
  4. "World Gold Council accepts China's Shandong Gold Group as board member". Xinhua. September 25, 2018.
  5. Liu, Yujing (September 14, 2018). "State-owned miner Shandong Gold plans US$768 million in Hong Kong initial public offering". South China Morning Post.
  6. Daly, Tom (May 8, 2020). "China's Shandong Gold to buy Canadian miner TMAC Resources for almost $165 million". Reuters. Retrieved May 10, 2020.
  7. News, Nunatsiaq (May 13, 2020). "China's interest in western Nunavut gold mine is commercial: legal expert". Nunatsiaq News. Retrieved May 13, 2020.
  8. Monga, Vipal (July 26, 2020). "China's Move to Buy Arctic Gold Mine Draws Fire in Canada". The Wall Street Journal. ISSN 0099-9660. Retrieved July 26, 2020.
  9. "National security review of Nunavut mine purchase by China underway". True North. October 16, 2020. Retrieved October 17, 2020.
  10. "China's Shandong Gold says Canada extends review of its bid for Arctic mine". Reuters. November 27, 2020. Retrieved November 28, 2020.
  11. Daly, Tom; Lewis, Jeff (December 22, 2020). "Canada rejects bid by China's Shandong for Arctic gold mine on security grounds". Reuters. Retrieved December 22, 2020.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.