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Copper shines for China National Gold
Publication Date : 22-05-2012
China National Gold Group Corp, the only central State-owned enterprise in the gold industry, is reporting 142 million yuan (US$23 million) in 2011 profit from its copper mining operation in Tibet autonomous region.
Called the Jiama copper property in Metrorkongka county, the mine produced about 10,000 tonnes of copper in 2011, making it the biggest in the autonomous region. The company paid about 100 million yuan ($15.8 million) in taxes last year.
The Jiama property has large deposits of copper and other metals that are extracted by both open pit and underground mining.
Sun Zhaoxue, chairman of the company, said China Gold Group will accelerate development of the second phase of the Jiama project by investing 5 billion yuan ($790 million) during the 12th Five-Year-Plan period (2011-2015).
By 2014, the company will have annual production capacity of 63,000 tonnes of copper valued at 4 billion yuan ($632 million), he said.
Plans also call for Jiama to be one of the top nonferrous metal production sites in the world in five years.
The company has invested 280 million yuan ($44.3 million) in exploration and estimates the area holds 8 million tonnes of proven copper ore reserves, 20 times more than in 2007 when the company began mining in the region.
In addition to mining, China National Gold also made efforts to improve local conditions by creating jobs and dealing with pollution, Sun said.
The company now employs 290 local people, some of them sent to college for further education.
It also spent 47 million yuan ($7.4 million) on road and bridge construction, environmental protection and water management.
Sun said the company will continue to invest money and talent in environment protection at mines in Tibet to ensure the use of advanced technology.
As the largest gold producer in China with its annual output of 89 tonnes, China Gold has doubled its gold reserves, sales volume and profits from 2007 to 2011.
Public data show the company increased its gold reserves from 275 tonnes in 2006 to 1,380 tonnes in 2011. Its copper reserves increased from 1.25 million tonnes to 9.9 million tonnes in the period.
Sun said the company envisions tripling both its total assets and revenues from 2011 to 2015 with the aim of joining top-tier global mining companies.