CNG to boost gold output 12.5%

China National Gold (CNG), the country’s largest gold producer, announced plans to increase output by 12.5% next year and use its Toronto-listed unit Jinshan Gold Mines to expand abroad, the South China Morning Post reported. CNG aims to produce 90 metric tons of gold next year, of which it will mine 30 tons and process and refine the remaining 60 tons from ores mined by smaller firms. China overtook South Africa to become the world’s largest gold producer in 2007, and expects to produce 285-300 tons this year, according to Sun Zhaoxue, the company’s chairman. CNG bought a 42% share in Jinshan – which has a mine in Inner Mongolia and exploration projects in Gansu province and Xinjiang – from Canadian firm Ivanhoe Mines in May, becoming its largest shareholder. CNG’s capital operations department manager said the company plans to expand Jinshan by injecting some of CNG’s own projects into it.