Shandong Gold Says It May Have Found China's Biggest Gold Mine

(Bloomberg) -- Shandong Gold Group Co., China’s No. 2 producer by output, said it discovered deposits in eastern China that could be the nation’s largest discovery as it pushes to add reserves.

The Xiling mine in Shandong province told local authorities it had found 382.58 tons of gold reserves and that the volume could reach more than 550 tons once exploration is completed in two years, which would make it China’s largest mine, according to a statement Tuesday that cited the company on sdchina.com, a website supervised by the provincial government. Operating at full capacity, the mine would have a life of 40 years, according to the statement.

Chinese gold companies have been stepping up their search for domestic deposits and eyeing acquisitions as the nation seeks to increase reserves by 3,000 tons to as much as 14,000 tons by 2020, the Ministry of Industry and Information Technology said last month.

Shandong Gold Mining Co. saw its shares rise as much as 2.8 percent in Shanghai. The listed unit said Monday that net profit doubled to 1.29 billion yuan ($187 million) last year from a year ago as gold prices rebounded.

To contact Bloomberg News staff for this story: Winnie Zhu in Shanghai at wzhu4@bloomberg.net.

To contact the editors responsible for this story: Jason Rogers at jrogers73@bloomberg.net, Jake Lloyd-Smith

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