Zijin Mining Group (2899), China's biggest gold miner by market value, is studying a move into shale gas and will target buying super mines after falling bullion prices and rising costs cut profit.
Net profit fell 59 percent to 2.13 billion yuan (HK$2.66 billion) last year from 2012, the Shanghang, Fujian-based firm said.
Zijin will spend about 8 billion yuan to buy large gold and copper mines.
"Given what has happened in the US, shale gas has a bright future in China and we are willing to give it a try and see what may happen," chairman Chen Jinghe said in Hong Kong yesterday. "Zijin would seek partnerships with firms already holding shale assets and it would take at least three to five years before we can see any meaningful results from shale gas business."
About Zijin Mining
Zijin Mining is a leading global metals and mining company and one of the world’s largest producers of gold, copper, and zinc. The company has more than 30 large-scale mining operations and projects across 19 countries on 5 continents. Leveraging strong in-house research, engineering, and development capabilities, Zijin maintains high operational efficiency and low costs in both acquisitions and operations. This enables the company to be an industry leader in value creation, underpinned by its philosophy of pursuing development for all and sustained by superior environmental, social, and governance performance. Zijin’s shares trade on the Hong Kong Stock Exchange (HKEX: 2899) and the Shanghai Stock Exchange (SSE: 601899).