13 October 2003 11:02
Gold processing main contributor to Zhaoyuan`s economy
Author: Everything that glitters in Zhaoyuan could well be gold. The small, coastal and county-level city in East
China's Shandong Province is expected to become Northeast Asia's largest deep processing base for gold. And
with good reason: The city has one-eighth of China's gold reserves. "We are striving towards, by 2007, an
annual sales volume of 40 billion yuan (US$4.82 billion), in terms of deep-processed gold products," said Song
Xiuxian, vice-president of Shandong Zhaojin Group Co Ltd. The company is one of China's leading gold manufacturers,
and the major contributor to Zhaoyuan's economy. The firm's products include jewels, works of art, souvenirs,
daily necessities and industrial articles. Song made the remarks late September on the sidelines of the ceremony to name
a train linking Beijing and Yantai, in East China's Shandong Province. The train will be called the "Train of
the Capital of Gold" for the next three years. Zhaoyuan used to be one of Yantai's counties. The announcement
marked the first time in China a train had been named after a city. The three-year right to name cost the firm 5.4
million yuan (US$650,602), Zhaoyuan Vice-mayor Zhang Guoshun said. Zhaoyuan, called "the Capital of Gold,"
produces about 1 million ounces of gold annually, or about one-sixth of China's gold production capacity. Zhaoyuan
has 100 tons of confirmed gold reserves, and is believed to have more than 1,000 tons of the precious metal. The local
economic development zone has implemented numerous favorable policies to attract more foreign investments within the
gold processing sector. Local officials vow to provide foreign manufacturers with rent-free processing facilities, and
to provide 100 percent tax rebates, for the first two years, Zhang said. The zone will exempt foreign manufactures from
paying managerial fees and will provide fixed-asset investments, Zhang added. Famous jewelry manufacturers -- including
US-based L Gold Miracle Jewelry Co Ltd, South Korea-based You & Me Handicraft Co Ltd and Hong Kong-based Kanfort
Precious Metals Co Ltd -- have established Sino-foreign joint ventures in the zone. They have invested a combined 220
million yuan (US$26.5 million). Local officials will continue talking with foreign gold-related chemical and high-tech
companies. Some of those discussions are expected to wrap up soon, and some plants could be operational by the end of
next year. Those deals are estimated to be worth a combined 300 million yuan (US$36 million). Zhaoyuan's annual
foreign investments are worth between 7 million and 8 million yuan (US$843,000 and US$963,000), most of which involves
gold-related products, Zhang said. Senior Russian gold processing experts will be invited to Zhaoyuan next month, he
added. Gold & Gem Jewelry Palace began operations in Zhaoyuan in late August to promote the trade of gold processed
products. "Zhaoyuan will be northern China's No 1 gold and gem distribution center," Zhang said. The city
is also preparing to launch gold futures, Song said. "We will start trading gold futures once it is permitted in
the Shanghai Gold Exchange," he said. "We recently practiced with simulated gold futures." The local
companies are licensed to conduct gold business -- including wholesale, retail and futures. They have also been granted
rights to import and export silver. A warehouse for gold transactions was built last year. It is one of the few such
warehouses for the Shanghai Gold Exchange.
[AIW [Asia Africa Intelligence Wire]] |
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