Researcher urges China to buy gold, energy, natural resources

Section:

Don't look now, but that's just what China is doing.

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By Aileen Wang and Jacqueline Wong
Reuters
Saturday, April 17, 2010

http://www.reuters.com/article/idUSTOE63G00P20100417?type=marketsNews

BEIJING -- China should use more of its massive foreign exchange reserves to buy gold to support its aim of raising the international role of the yuan currency, a senior government researcher said on Saturday.

Li Lianzhong, who heads the economic department of the Communist Party's policy research office, said that Beijing should also encourage domestic enterprises to acquire foreign energy and natural resource assets by using part of the foreign exchange reserves.

"We can also consider buying some more gold because if we want to develop the RMB into an international currency, we must have some scale of gold reserves," Li told a forum in Beijing. The yuan is also known as the renminbi.

China's foreign exchange reserves, the world's largest, rose to $2.4471 trillion by the end of March.

China disclosed last April that its official gold holdings had risen to 1,054 tonnes from 600 tonnes in 2003, confirming years of speculation it had been buying.

But gold is still a small portion of its huge foreign exchange reserves, which are mostly invested in dollar-denominated assets.

The tumbling U.S. dollar has threatened to weaken China's buying power, fuelling a debate that the world's third-largest economy should diversify into gold, oil and metals.



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Preliminary Feasibility Study Completed for Seabridge Gold's KSM Project

Study Reports Reserves of 30.2 Million Oz. Gold, 7 Billion Lbs. Copper,
133 Million Oz Silver, 210 Million Lbs. Molybdenum

Base Case Life of Mine Cash Operating Costs Estimated at $144/oz. Gold Produced
(Net of Base Metal Credits)

Toronto -- Seabridge Gold Inc. has announced results from a National Instrument 43-101 compliant preliminary feasibility study of its 100-percent owned KSM project in northern British Columbia, Canada. The study was prepared by Wardrop, a Tetra Tech company, a major international engineering and consulting firm.

Seabridge President and CEO Rudi Fronk says, "The study confirms that the KSM project now hosts the largest gold reserve in Canada and one of the largest in the world. KSM is projected to provide an extraordinary mine life of more than 35 years with estimated cash operating costs well below the current average of the major gold producers. Estimated capital costs are in line with those of comparable, large-scale, undeveloped gold-copper projects and KSM has the advantage of being located in a low-risk jurisdiction."

For the complete Seabridge Gold statement:

http://www.seabridgegold.net/readmore.php?newsid=283