Chinese mining firm files judicial review against Ottawa
The judicial review by Zijin could be a test case on how other Canadian companies approach their deal making with regards to Chinese investments.
Global Industry Analysts, a research firm, predicts global gold production will exceed 2,600 tonnes by next year, a level last reached in 2001, on the back of higher prices and new technologies unlocking resources considered to expensive or difficult to mine in the past.
Mining accounts for two-thirds of supply and is dominated by China which in 2007 overtook South Africa as the number one global producer. Gold coming onto the market from people selling their jewellery increased significantly but was more than offset by investor demand and the fact that central banks became significant buyers.
According to the World Gold Council, an industry body, in the first quarter of 2011, global gold demand rose 11% year-on-year to 981 tonnes powered by investment demand in bars and coins. Jewellery consumption, which is by far the greatest driver of demand, rose 7% on the back of rising sales in India and China.
