One of China's Largest Gold Producers Expanding Into the U.S. and Australia

Shandong Zhaojin Group Co., one of the largest gold companies in China, has announced that the company has recently entered into negotiations to acquire gold mines in both the United States and Australia.

Chairman of the company, Lu Dongshang said that they are currently in various stages of talks with potential mines but did not disclose any specific assets.

Shandong Zhaojin Group Co.,  is a state-controlled gold company and has made several purchases of domestic mines in the past but has not yet expanded into foreign investments as much as other Chinese mining companies.

In recent years, Chinese gold companies have upped their purchases of foreign mines throughout Africa and Australia. The actual number of Chinese-owned mines around the world is not known due to Chinese investor's penchant for purchasing via proxies.

Last year, the demand for gold in China reached record highs and the country surpassed India as the world's leading consumer of gold. The World Gold Council has estimated relatively flat growth for this year, but many gold experts staunchly dispute this and totals for 2013 have been revealed to be DOUBLE what the WGC originally reported due to the council being unable to get real totals of demand or imports for the country. 

Lu Dongshang said that for the company to be interested in a foreign mine, it would have to produce at least 5 grams per ton of ore and 50 tons in reserve due to foreign mines usually having a higher cost of production.

Lu said that Shandong Zhaojin was also looking at the possibility of consolidating domestic operations as part of a cost-cutting measure.