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In the News

Gold imports rise 65% to record in April

GOLD imports by China's mainland from Hong Kong rose 65 percent to a record in April, up for a third straight month as investors sought a hedge against financial market turmoil and an economic slowdown.

Shipments totaled 103,644.5 kilograms in April from 62,913 kilograms in March, according to export data from the Census and Statistics Department of the Hong Kong government yesterday. In the first four months, imports were 239,174 kilograms from 27,114 kilograms a year earlier, according to Bloomberg News calculations. China doesn't publish such figures.

Increased imports by the second-largest consumer after India may help extend a rebound in the precious metal that's been driven by speculation the US Federal Reserve may add to stimulus this month to boost the recovery. Spot gold rallied 4.1 percent on June 1 after US jobs data missed hopes. China's central bank may also be boosting holdings, saidWang Xinyou, a senior analyst at the Agricultural Bank of China Ltd.

Web link: http://www.shanghaidaily.com/nsp/Business/2012/06/05/Gold%2Bimports%2Brise%2B65%2Bto%2Brecord%2Bin

Shandong Gold soars on acquisition bid

THE shares of Shandong Gold Mining Co, China's second-biggest gold producer by market value, yesterday jumped the most in almost six weeks in Shanghai trading after its parent announced plans to buy two local gold producers within a year.

Shandong Gold Group agreed to pay 3.75 billion yuan (US$590 million) for 98.5 percent stake in both Shandong Shengda Mining Co and Shandong Tiancheng Mining Co, a price lower than the estimated net assets of the two companies at 3.85 billion yuan, according to the gold miner's statement filed with the Shanghai Stock Exchange.

According to the statement, both Shengda and Tiancheng have mining and exploration rights for iron ore and gold in several locations.

The shares of the listed unit soared 5.7 percent, the most since April 25, to close at 36.31 yuan yesterday. The stock has gained 27.9 percent so far this year, compared with the Shanghai Composite Index's 5 percent growth.

The unit also plans to invest an additional 200 million yuan of its existing fund on three other mines, it said.

Chinese gold miners are competing for mining resources this year, as the country outshone India in bullion consumption in the first quarter of this year and may become the world's biggest consumer this year, the Gold World Council said in its latest report.

Zhongjin Gold Co, another major gold producer, also planned to bid for the two mining companies, according to its filing statement on April 13.

Shandong Gold's successful bid for the two miners will benefit the Group and extend its peripheral expansion, Xiao Zheng, industry analyst at GF Securities, said in a report.

Web link: http://www.shanghaidaily.com/nsp/Business/2012/06/05/Shandong%2BGold%2Bsoars%2Bon%2Bacquisition

Lehman, Lee & Xu is a top-tier Chinese law firm specializing in corporate, commercial, intellectual property, and labor and employment matters. For further information on any issue discussed in this edition of China Mining Lawyers Alert or for all other enquiries, please e-mail us at mail@lehmanlaw.com or visit our website at www.lehmanlaw.com and Mongolia www.lehmanlaw.mn.

Lehman, Lee & Xu Mongolia is one of the first and only international law firms with a full time presence in Mongolia.  Our Ulaanbaatar office is staffed with resident foreign legal consultants having significant experience in Mongolia and qualified Mongolian attorneys. The firm’s foreign legal consultants and local attorneys are fully acquainted and experienced with Mongolia’s laws and legal system, business climate and political affairs. For any Mongolian legal matters please refer to our Mongolian website www.lehmanlaw.mn.

© Lehman, Lee & Xu 2012.
This document has been created for educational purposes for clients, potential clients and referrers of services to Lehman, Lee & Xu, and to alert readers to the services provided by Lehman, Lee & Xu. It is not intended to serve as definitive professional or legal advice, and should not be relied upon as such. Lehman, Lee & Xu does not endorse any personal opinions which may be contained herein.
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