Coeur d’Alene Mines agrees gold production deal with China National Gold
Coeur d'Alene Mines Corporation (NYSE: CDE, TSX: CDM, ASX: CXC) has reported that Coeur Alaska, Inc., a wholly-owned subsidiary, has entered into a contract with China National Gold Group Corporation , China's largest gold producer, for the purchase and processing of gold concentrates produced at Coeur's new Kensington gold mine.
This agreement is the first of its kind between a state-owned corporation of the People's Republic of China and a US precious metals mine.
The Kensington mine, located in Alaska, is scheduled to begin production shortly. It is expected to produce 50,000 ounces of gold this year and average approximately 125,000 ounces of annual gold production over an initial 12.5 year life based on current reserves of 1.5 million ounces.
"We are delighted to enter into this major relationship with China National Gold," said Dennis Wheeler, Coeur's chairman, president and chief executive officer.
"This represents a groundbreaking level of business relations between the two companies as this new, major gold mine begins the initial stage of its long production life."
The contract with China National Gold relates to approximately half of the concentrates to be produced at Kensington.
China National Gold, a state-owned enterprise headquartered in Beijing, operates approximately sixty gold mines throughout China, representing over 20% of China's total gold production.
In addition to its mining operations, China National Gold also owns and operates a number of smelters and refineries throughout China. China National Gold is the only Chinese gold company that is a member of the World Gold Council.
Coeur d'Alene Mines Corporation is one of the world's leading silver companies and also a significant gold producer.
Coeur is also a recognized leader in environmental stewardship and worker safety, with nine national and international awards earned over the past year.
The company's three new long-life mines include the San Bartolomé silver mine in Bolivia which began operations in 2008, the Palmarejo silver/gold mine in Mexico, which began operations in 2009, and the Kensington gold mine.
The company also owns underground mines in Argentina and one surface mine in Nevada, and owns a non-operating interest in a low-cost mine in Australia.
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