China's Zijin to invest $100 mln in Tajik gold

DUSHANBE, Dec 6 (Reuters) - Chinese miner Zijin Mining Group Co Ltd (2899.HK: Quote, Profile, Research, Stock Buzz) plans to invest over $100 million in the next three years developing gold mines in the ex-Soviet republic of Tajikistan, the Tajik president's press office said on Thursday. Tajik President Imomali Rakhmon met the president of Zijin Mining, Chen Jinghe, in the airport lounge in the Chinese city of Taiyuan on a stop-off on his way back from Japan.

Rakhmon's press service quoted Zijin Mining Vice-President Lan Fusheng as saying the Chinese company would raise output of gold at the Zerafshan joint venture to seven tonnes (247,000 ounces) a year. Now, it produces less than two tonnes annually. "The company's management intends to invest over $100 million in the next three years mining gold and other precious metals and at the same time make a substantial contribution to this sector in Tajikistan," Lan was quoted as saying. Zijin Mining, China's second-largest gold miner, this year acquired a 75 percent stake in the Zerafshan gold project for $55 million from British company Avocet Mining Plc (AVM.L: Quote, Profile, Research, Stock Buzz).

The Tajik government holds the remaining 25 percent in the project, which has reserves estimated at 5.6 million ounces, or more than 158 tonnes.

No details were given about other potential gold-mining projects in Tajikistan.

Zijin Mining, the parent company of Hong Kong-listed Zijin Mining Group Co Ltd, is already active in the former Soviet Union, having agreed to develop a lead and zinc deposit in the Russian republic of Tuva. [ID:nL18235088]

(Reporting by Roman Kozhevnikov, additional reporting by Lucy Hornby in Beijing, writing by Robin Paxton in Moscow; Editing by Chris Johnson)