Sino Gold Mining Limited was a Canadian-based gold mining company that operated in Australia and China. It was listed on the Toronto Stock Exchange and the Australian Securities Exchange.
The company's focus was on gold mining and exploration, with a strong presence in New South Wales, Australia. Sino Gold Mining Limited had a significant portfolio of gold projects.
The company's history dates back to 2000, when it was founded through the merger of two smaller gold mining companies. Sino Gold Mining Limited underwent significant growth and expansion in the following years.
In 2009, the company was acquired by China National Gold Group for approximately $1.3 billion, marking a significant milestone in its history.
Related reading: How to Buy Gold in Australia
Expansion and Challenges
Sino Gold Mining has a significant presence in China, with the country being the world's largest gold producing country.
The company has a joint venture with the Chinese government at its Jinfeng Mine, which is located in the mountains of southern China.
Sino Gold sought guidance on how to build its "social license to operate" by promoting long-term community development in the five remote villages surrounding the mine.
The company contacted BSR for advice on designing a community development strategy that would go beyond traditional public relations or social marketing efforts.
In 2010, Eldorado Gold Corporation acquired 19.9% of Sino Gold for US$282 million, setting the stage for a larger acquisition.
The acquisition was completed in a deal worth A$2.2 billion, with Sino Gold shareholders receiving 0.55 Eldorado shares for each Sino Gold share they owned.
This deal gave Sino Gold's current shareholders a 25% stake in the merged company and increased Sino Gold's total ownership to 30%.
The combined company's assets include China's second largest gold mine, which is set to begin construction of its third mine this quarter.
The merged company's production capacity is expected to increase from 550,000 ounces to 850,000 ounces with the addition of two more mines.
For another approach, see: Eldorado Gold
Impact and Effects
Sino Gold is taking action on recommendations presented in China and at company headquarters in Sydney.
The company plans to establish a multi-year budget commitment for community development at Jinfeng.
Development work in the five communities around the mine is expected to be underway by the end of 2008.
A long-term partnership agreement is being developed with recommended development agencies.
This partnership will help facilitate the community development efforts at Jinfeng.
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