A Sino-Australian joint-venture for gold mine exploitation in southwest China's Guizhou Province is expected to begin operation in September this year, according to local government sources.
The Lannigou Gold Mine, to be built in partnership with an Australian gold company (Australia:SGX.AX), will cost 815 million yuan (100 million U.S. dollars). The mine is capable of handling 1.2 million tons of gold ores a year.
The project, located in Zhenfeng County of Buyi and Miao Autonomous Prefecture in southwestern Guizhou, is to turn out 180,000-200,000 ounces of gold, with resources at the mine workable for 15 years. When the project is operated at full steam, it will become the largest gold mine in Asia.
The state-of-the-art bacteria oxidation technique will be adopted for the Lannigou Gold Mine, the sources said. Construction of the second phase is to start, upon the operation of the first phase in the latter half of this year.