Eldorado seeks a buyer for its mines in China for $1.5bn

5 November 2014 (Last Updated November 5th, 2014 18:30)

The largest foreign producer of gold in China Eldorado Gold is planning to sell its Chinese mines for $1.5bn.

The largest foreign producer of gold in China Eldorado Gold is planning to sell its Chinese mines for $1.5bn.

China National Gold Group, the country's biggest producer of the commodity, is reportedly interested in the deal, as well as other companies including Zhaojin Mining Industry, Zijin Mining Group and Jiangxi Copper.

Eldorado has three operating mines in China with a production capacity of 300,000oz of gold a year, in addition to its projects in Turkey, Greece and Brazil.

"Eldorado has three operating mines in China with a production capacity of 300,000oz of gold a year." 

Tanjianshan open pit mine in north-western China's Qinghai province and the White Mountain underground mine in the Jilin province close to the border with North Korea, are Eldorado Gold's assets in China.

TD Securities analysts Steven Green and Daryl Young are quoted by Bloomberg as saying that the $1.5bn price is highly attractive to buyers.

In February, Chinese private equity firm CDH Investments Fund Management expressed its approval to spend $40m for a 20% stake in Eldorado's Eastern Dragon project, which is situated near the Russian border.

CEO Paul Wright said that Eldorado aims to resume construction at the mine next summer after it expects to receive approval from the Chinese Government.