Swapping aluminum for copper will maintain China’s resources, group says
China depends on overseas imports for 60% of its aluminum resources as opposed to 70% of its copper resources.
Canadian miner Iamgold Corp would fit well with China Gold International Resource Corp Ltd’s acquisition strategy as the Chinese state-run company seeks to buy producing gold mines, an executive with the overseas arm of China National Gold Group said on Wednesday.
China Gold is aggressively looking to add to its project pipeline, and Iamgold would be a good fit, Jerry Xie, executive vice president, told Reuters on the sidelines of the Denver Gold Forum.
China Gold is eyeing deals in Canada, Latin America and Africa in the $1 billion to $2 billion range
“You can take that as an example. We feel comfortable for that size, as a corporate acquisition,” he said.
“That one is really good to fit our strategy,” he added.
He declined comment on whether the company has held specific talks with Iamgold, whose flagship project is the Rosebel mine in Suriname.
China Gold is eyeing deals in Canada, Latin America and Africa in the $1 billion to $2 billion range but would also consider partnering on projects and smaller deals around $500 million, Jerry said.
Iamgold Chief Executive Officer Stephen Letwin told Reuters on Tuesday he would not comment on specific deals but said the company was open to partnering on its projects with strategic investors.
Iamgold was not available for immediate comment on Wednesday.
Rising gold prices have spurred expectations of deal-making in the sector as miners look to boost shrinking gold reserves and vocal investors demand companies lower costs.
Iamgold shares were trading down 0.1% C$4.50, giving it market value of about C$2.2 billion ($1.7 billion)
($1 = 1.3291 Canadian dollars)
(By Jeff Lewis; Editing by Denny Thomas, Rosalba O’Brien and Cynthia Osterman)
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