Unearthing a serious Chinese interest

In the mining industry, there is no better place to be than in China. And there is no better time than now.

Central China Goldfields has realized that and is focused on becoming a serious player in Chinese mining.

"We are convinced that China is geologically blessed. It is the fourth largest gold producer in the world and in the top 10 for zinc and nickel. Yet the mining industry is in its early stages when compared with other industries in China, presenting a great opportunity to all involved," says Managing Director Jeffrey Malaihollo.

A British exploration company with operations in China, Central China Goldfields listed on London's Alternative Investments Market (AIM) in March 2005, a move that has been successful because of the flexibility provided by the AIM's principle-based regulatory system.

As a small-sized company, Central China Goldfields finds it has an added advantage over some of the larger mining companies doing business in China.

"As a smaller company, we can be nimble and make quick decisions. In an immature market like China's, rules are constantly changing and we are able to adapt quickly to these changes. This allows us to take advantage of certain opportunities that larger companies may miss out on," points out Malaihollo.

As the Chinese mining industry matures, there is a need for international companies to contribute critical knowledge, which includes up-to-date exploration techniques.

Malaihollo believes it will take between 5 and 10 years before Chinese mining companies equal the ability of foreign companies and take control of the domestic market. Until that happens, Central China Goldfields is building strong relationships with partners in China to ensure a long-term presence in this important market.

"Our two major projects are both being done in coordination with the same partner, Sichuan Bureau of Metallurgy and Geological Exploration (SBMGE). This continuity is a great example of our successful partnership and long term commitment," comments the managing director.

The firm's most exciting project is for Nimu development in Tibet. Located 120 km west of the capital Lhasa, Nimu is the most recent result of the partnership with SBMGE.

The company is also interested in increasing the number of Asian shareholders and has been in contact with investors in Singapore and Hong Kong Special Administrative Region.

"We are a small company but very serious about China. We believe strongly in China as a geological entity as well as a country that is moving forward at a great pace. We look forward to working with the local people to develop Central China Goldfields into a very serious player in China," says Malaihollo.

www.ccgoldfields.com

(China Daily 08/28/2007 page18)