Shandong Gold Group

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Shandong Gold Group
State-Owned Enterprise
IndustryMining/Financial Services/Property Management
Founded1975
Headquarters,
Key people
Li Guohong(Chairman)
ProductsGold/Nonferrous Metal
Revenue7.46 billion USD (2016)
Number of employees
12,793 (2015)
Websitehttp://www.sd-gold.com/

Shandong Gold Group is a state owned entity Chinese gold mining company under the provincial government of Shandong. The company is the second largest producer of gold in China by output and its publicly listed subsidiary ranked #1,898 in the Forbes Global 2000.[1][2]

Corporate affairs[edit]

Shandong Gold Group is the parent company of Shandong Gold Mining, which is listed on the Shanghai Stock Exchange. Following a pact announced in September 2018 with Barrick Gold, the world's largest gold miner by output, both companies agreed to strengthen ties with each other by cross-investing up to $300 million in each other's shares, with Barrick Gold buy shares in Shandong Gold via the Shanghai Stock Exchange.[3] The cross-investment agreement followed the purchase of a 50% interest by Shandong Gold in Barrick Gold's Veladero mine in Argentina in April 2017.

As a Shandong provincial state owned enterprise, the company is directly supervised by the Stated-owned Assets Supervision and Administration Commission of the Shandong Provincial Government.

The company is a member of the World Gold Council, a trade body that promotes the gold industry and promulgates social and environmental standards for gold mining.[4]

Operations[edit]

Domestic gold mining[edit]

The company primary gold mining and exploration activity are domestic. The gold production from its 12 domestic mines in Shandong, Inner Mongolia, Gansu, and Fujian account for 6.6% of national output.[5] A gigantic discovery was announced in September 2018 when the company found a site with at least 382 tonnes of gold worth an estimated $22 billion in the Laizhou-Zhaoyuan area of the Shandong Peninsula.[1]

International gold mining[edit]

In April 2017 Shandong Gold purchased a 50% interest in Barrick Gold's Veladero mine in Argentina for US$960 million and also formed a partnership to explore joint-development of the Pascua-Lama deposit.

Non-gold businesses[edit]

The company has several non-gold related businesses including nonferrous metal, tourism and real estate. It has financial services subsidiaries in both China and Hong Kong (SD Gold Financial Holdings Group and SDG Asset Management (HK) Limited).

References[edit]

  1. ^ a b Ye, Josh (March 31, 2017). "Chinese mining firm claims discovery of nation's largest gold seam". South China Morning Post.
  2. ^ "Global 2000 Leading Companies". Forbes.
  3. ^ Tang, Shihua (September 27, 2018). "Shandong Gold, Barrick Plan to Cross-Invest up to USD300 Million". Yicai Global.
  4. ^ "World Gold Council accepts China's Shandong Gold Group as board member". Xinhua. September 25, 2018.
  5. ^ Liu, Yujing (September 14, 2018). "State-owned miner Shandong Gold plans US$768 million in Hong Kong initial public offering". South China Morning Post.

External links[edit]