To enable Saipan with high-quality development as "going out" is an important step in the internationalization of Chifeng Gold - Interview with Lv Xiaozhao, Chairman of Chifeng Jilong Gold Mining Co., LTD

　　China Gold Network Xu Yong's acquisition of Saipan copper and gold Mine in Laos is the first step of Chifeng Gold's internationalization and an important step。Based on this project, we will look for better quality assets for mergers and acquisitions in Southeast Asia, Africa, South America and other regions in the future。On October 9, at the 2019 China International Mining Conference, Lv Xiaozhao, chairman of Chifeng Jilong Gold Mining Co., LTD., accepted an interview with a reporter from China Gold News。

Lu Xiaozhao accepted an interview with China Gold News

　　An important step in "going out"

　　"In fact, we set our sights overseas as early as 2015 and actively sought some good underlying assets overseas。Lu Xiaozhao said that in October 2017, Chifeng Gold began to formally conduct due diligence on the Saipan Gold and Copper mine in Laos, and completed delivery in November 2018。

　　Saipan Copper-Gold Mine is a mature mine that has been in operation for seven or eight years and is the largest mine in Southeast Asia。Historically, the mine has produced both gold and copper, with a maximum annual output of 6 tons of gold and 90,000 tons of copper。In 2013, with the decline in gold prices and the completion of the gold oxidation mine at Saipan Copper Gold Mine, the mine gradually ceased gold production and mainly produced copper。

　　"Since the beginning of this year, we have invested 13,000 meters of exploration drilling, of which the drilling for gold is more than 6,000 meters, and the drilling for copper is also more than 6,000 meters, and the current point of view has achieved good exploration results.。Lu Xiaozhao said, "In the next step, we will continue the copper production cycle of Saipan Copper Gold mine, while actively restoring gold production.。At present, we are doing research on gold beneficiation and smelting, as well as the transformation of the beneficiation plant, and plan to resume gold mine production at the end of next year。”

　　In Lv Xiaozhao's view, the acquisition of Saipan copper and gold Mine in Laos is the first step of Chifeng Gold's internationalization, and it is also an important step, which is of great significance to promote the international development of Chifeng Gold。"Through Saipan Copper and Gold Mine, Chifeng Gold on the one hand to train and exercise the internationalization of the enterprise team, on the other hand accumulated a wealth of international mining development experience, which are conducive to the future development of Chifeng Gold.。"Lu Xiaozhao said。

　　Promote diversified development

　　At the beginning of listing in 2012, Chifeng Gold's main business was gold mining and sales, which belonged to the upstream of the mining industry chain。With the development of the company, Chifeng Gold acquired two comprehensive resource recycling enterprises, one is located in Chenzhou, Hunan Xiongfeng Technology, mainly engaged in non-ferrous metal resources comprehensive recycling business;The other is Anhui Guangyuan Technology, mainly engaged in waste electrical and electronic products processing business。

　　In Lv Xiaozhao's view, extending to the downstream of the mining industry chain can effectively disperse operational risks and enhance the ability of enterprises to resist risks。

　　Not long ago, Chifeng Gold issued an announcement that it intends to issue shares to buy 100% of Hanfeng Mining。Through the acquisition of Hanfeng Mining，Chifeng Gold will acquire a more mature complete industrial chain related to copper, lead, zinc and molybdenum mining and beneficiation business，Can rapidly expand the scale of copper, lead, zinc and molybdenum business varieties，Improve the concentration of mining operations on gold，Disperse the risk of price fluctuation of single resource varieties;At the same time, it will increase the reserve scale and mining capacity of non-ferrous metal mines such as copper, lead, zinc and molybdenum，It can relieve the pressure of follow-up resources of listed companies，Increase the annual output of non-ferrous metals by listed companies，Increase the reserves of non-ferrous metal mines of listed companies。

　　Lu Xiaozhao said that Hanfeng Mining, which Chifeng Gold plans to acquire, has made a new breakthrough, and this acquisition will promote the development strategy of Chifeng Gold from "mainly gold" to "mainly copper and gold, taking into account multiple metals", which can be said to be the beginning of the diversified development of Chifeng Gold。

　　High-quality development is the basis of "going global"

　　Although Chifeng Gold began to pay attention to the overseas mining market in 2015, it did not take the first step until 2018, because of the huge risk of overseas mining investment。"A good asset after the completion of the merger, only 30% of the success, there are 70% in operation management, community relations, religious culture, local politics and other aspects need attention.。Lv Xiaozhao said that mining companies need to first improve the quality of their own development in order to have enough confidence and confidence to "go out".。

　　当前，China has introduced a series of safety and environmental protection policies，It has had a huge impact on many mining companies，But in Lv Xiaozhao's view，The improvement of the standard is conducive to promoting Chinese mining enterprises to constantly improve their own infrastructure，We will increase investment in safety and environmental protection，Strengthen scientific and technological innovation，We will promote the transformation and upgrading of enterprises，So as to enhance the core competitiveness of enterprises and promote enterprises to "go out"。

　　"Although from the surface, China's gold production has continued to decline in recent years, the mining situation is still grim, but the industry concentration is significantly increased, the future situation of China's mining industry is bound to be better.。Lv Xiaozhao said that with the continuous improvement of the development quality of China's mining enterprises, the ability of enterprises to deal with the risks of "going out" is also constantly improving。China's gold enterprises "going out" should also start from high-quality development。