Chinese miners are interested in buying a zloty mine in Kazakhstan

Three Chinese firms Zhongjin Gold Corp., Shandong Gold Mining Co. and Zijin Mining Group Co. are competing for the Glencore gold mine in Kazakhstan, which the miner put up for sale earlier this year. Glencore wants to receive about $ 2 billion for its mines at the Vasilkovskoye field. The sale will give the Swiss mining giant the opportunity to meet its goal of reducing net debt to below $ 18 billion this year.

Gold is one of the top performing commodities of 2016 as the yellow metal is up 18%, the best start to the year in nearly three decades. Growth was driven almost entirely by ETFs and large futures speculators like hedge funds, according to the World Gold Council.

Gold production at the Vasilkovskoye deposit is artificially maintained at about 350,000 ounces per year. The smaller Glencore gold mine in Kazakhstan, Komarovskoye, was sold in April to Polymetal International for an initial $ 100 million.

Kazakhstan is known for its wealth. According to the data, the country has the second largest reserves of uranium, chromium, lead and zinc, as well as the third largest manganese deposits and the fifth largest copper reserves in the world. The country is also in the top ten in terms of iron and gold reserves, it is a well-known exporter of diamonds, and it ranks 11th in terms of proven reserves of oil and natural gas.