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Gold miner enters Argentina

Shandong Gold Mining Co will pay $ 960 million for a 50 percent stake in Barrick Gold Corp’s Veladero gold mine in Argentina, the Canadian miner said in a press release on Thursday.

The deal will have the companies look at jointly developing the nearby undeveloped Pascua- Lama gold and silver project on the border of Argentina and Chile.

The two companies will also consider other investment opportunities on the El Indio Gold Belt.

“Shandong is an ideal partner to help us unlock the untapped mineral wealth of the El Indio Belt over the long term, while working with us to generate more value from the Veladero mine today,” Barrick Executive Chairman John Thornton said.

Shandong Gold’s chairman said in the release the miner aims to “build a long- term relationship” with Barrick.

“We are excited to enter Argentina’s dynamic mining industry in partnership with Barrick at Veladero, while exploring other opportunities in one of the most prospective mineral districts in the world,” he said.

Reuters could not reach Shandong Gold for further comment.

The largest Chinese buyouts in 2017 have been in the materials industry, the Financial Times reported on Thursday, like Wang Tai Holdings purchased two iron mine interests in Mongolia.