Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Commodities  >  Gold       XAUUSD


News SummaryAll newsMarketScreener Strategies

China's Zijin cuts 2020 gold output target after Porgera mine snub

share with twitter share with LinkedIn share with facebook
04/27/2020 | 09:03am EDT
The company logo of Zijin Mining Group Co Ltd, China's biggest listed gold producer, is displayed at a news conference following its annual results in Hong Kong

China's Zijin Mining on Monday revised down its gold production target for 2020 after Papua New Guinea (PNG) refused to extend the mining lease at the Porgera mine it operates with Barrick Gold Corp.

Zijin, which produced 40.8 tonnes of mined gold in 2019, was previously targeting output of 44 tonnes this year, rising to 42-47 tonnes in 2021 and 49-54 tonnes in 2022.

However, following the PNG decision, Zijin said in a filing it would strive to "maintain the mine-produced gold production volume in 2020 about the same as that of 2019" by speeding up the upgrade and construction of the Longnan Zijin project in China and other mines in its portfolio that were already producing.

The Porgera snub ended months of uncertainty after the lease for the project expired in August but Zijin said its joint venture with Barrick would "pursue all legal avenues to protect its legitimate interests and recover any damages."

Zijin's share of Porgera production in 2019 was 8.827 tonnes.

Zijin said it would "proactively seek lawful and reasonable solutions" to the impasse, the filing to the Hong Kong stock exchange said, warning that a prolonged outage at the mine would "cause losses to all the stakeholders."

Zijin, which has mines in countries including Colombia, Serbia and Australia, said it expected its gold production to maintain "satisfactory growth in the future."

It said it would pay attention to market opportunities and consider acquisitions of producing assets to boost output.

Zijin's shares closed down 4.9% in Hong Kong on Monday and fell 9.2% in Shanghai.

(Reporting by Tom Daly; Editing by Edmund Blair)

Stocks mentioned in the article
ChangeLast1st jan.
GOLD 0.50% 1794.5 Delayed Quote.17.04%
LINE CORPORATION -0.18% 5580 End-of-day quote.4.30%
SEEK LIMITED 2.30% 22.2 End-of-day quote.-1.55%
share with twitter share with LinkedIn share with facebook
Latest news on GOLD
04:29pMaterials Down As Covid Concerns Weigh On Industrial Metals, Buoy Gold -- Mat..
04:24pStocks, oil slip but Chinese stocks rally a sixth day
04:23pStocks, oil slip but Chinese stocks rally a sixth day
04:20pStocks, oil slip but Chinese stocks rally a sixth day
04:08pEXCLUSIVE : Chile putting mine workers' health over copper production, minister ..
10:45aTRACKINSIGHT : Market Rebound despite Rising Concerns over Rapid Escalation in C..
04:11aKibali's $500 million will be cleared to leave Congo 'very soon' - Barrick CE..
03:52aS.Africa's Omnia swings to annual profit as turnaround bears fruit
02:26aCurrency crisis impoverishes Iranians, strains economic defenses
07/06Asian stocks set to follow U.S. higher on China hopes, upbeat data
More news
Chart GOLD
Duration : Period :
Gold Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GOLD
Short TermMid-TermLong Term