Monday, September 10, 2007

Vietnam-New Zealand JV gets nod to mine gold

A Vietnam-New Zealand mining company obtained a license Thursday to mine for gold in Vietnam�s central Binh Dinh province.

The Binh Dinh New Zealand Gold Company Limited is set to invest US$15 million in developing the Tan Thuan gold mine in Tay Son district.New Zealand�s KS Mining Limited (KSML) will contribute 45 percent and the Binh Dinh Biotan Minerals Joint Stock Company the rest.The venture also plans to scale up capital to $100 million if the initial exploration proves successful.

According to experts, the Tan Thuan mine has huge reserve of gold but they undisclosed the proven figures. KSML New Zealand is a subsidiary of Zedex Mineral Ltd., the largest shareholder in Canada�s Olympus Pacific Minerals, which has a gold mining project in the central province of Quang Nam�s mountainous Phu Ninh district.

Olympus Pacific Minerals has also just teamed up with two local partners, Mineral Development Co. and Quang Nam Mineral JS Co., to build a $45 million gold processing facility in Quang Nam.Vietnamese gold demand for jewelry and other purposes is estimated at 60 tons this year, 20 percent higher then last year.