China looks to acquire African Barrick Gold stake

  • China's state-owned miner, China National Gold, has held talks to buy a stake in African Barrick Gold (ABG).

    Demand for gold in China has surged and it is expected to become the world's biggest market for bullion this year.

    As one of Africa's largest gold miners, African Barrack has large reserves but has struggled to meet production targets.

    Last year, the company produced almost 688,000 ounces of gold, compared to 701,000 ounces in 2010 and 716,000 ounces the year before.

    Its cost of production has also risen. According to the firm, it cost $692 to produce an ounce of gold last year, an increase of more than 20 percent from 2010.