Why build a Gold Mine in China???The cost of developing a new mine in China, like Beyinhar, is perhaps a fraction of that elsewhere in the world. This is why the BioGold Plant could be built and run so cheaply their.
Even the exploration has been very low cost given the near surface nature of the gold found so far. Mind you there could be a sea of gold found under this, in the sulfide zones. But so far, this only puts us somewhere around US$5 to US$8 per ounce discovered.
In China, when a plant operator is being paid only $4,000 a year, a chief geologist $6,000 a year, electricity estimated at US$0.05/kwh at the mine gate, diesel US80 cents/litre, loading hauling and blasting at around $2.5 per cubic metre and the cost of the gold plant of around $30 million, as well as local equipment capital costs being extremely low, compared with elsewhere, return on capital can be extremely rapid as profits can be great.
These are just a few of the reasons why the Cash Cost for Beyinhar will be $280, and instead of rising sharply, will be going down when production picks up to 100,000 oz, subject to them not finding a whole bunch more gold there, which they probably will.
GB