Eldorado Gold Corporation already had a presence in China when it made a friendly $1.87 billion offer on August 26 for Sino Gold Mining Limited. The acquisition will more than double Eldorado’s gold production in China, and make the Canadian miner the biggest foreign gold producer in the world’s largest gold-producing country. In 2008 China overtook South Africa as the global leader in gold production.
The Sino Gold acquisition will boost Eldorado’s yield in China to about 550,000 ounces from 330,000 ounces. Sino Gold, which is listed in Australia, will become a wholly owned subsidiary of Vancouver-based Eldorado. At press time the deal was expected to close by the end of 2009. It requires court approval and the support of Sino Gold shareholders.
