Jiangxi Province will encourage gold mine consolidation and foreign investment, according to the provincial government's Jiangxi gold industry development guidelines, recently released on its official website.

A large proportion of the current 78 gold mines in Jiangxi are small-scaled and disconnected from each other, which often results in poor resource-sharing and supervision. Many of the mines are nearing the end of their productive lifespans and most of the mining and selecting technology employed is out-of-date.

The new guidelines state that the Jiangxi government will grant favorable policies to foreign mining companies who carry out risky prospecting and enter into joint ventures with local mining companies to extend the lifespan and reserves of gold mines.

The government is considering setting up a gold mine prospecting fund to support local mines in new gold prospecting projects.

Major gold mines that have installed sophisticated mining and selecting technology and promote safety and environmental protection will be supported by the government in gold mine mergers or acquisitions. This will aid in resource consolidation and combat illegal mining activities.

The eastern Chinese province of Jiangxi holds approximately 565 tons of gold reserves, more than any other Chinese province. Jiangxi Province produced 16.79 tons of gold last year, accounting for 7 percent of the nation's gold production, with 3.58 tons of which sourced from gold mines. Jiangxi Copper Group produced 13.13 tons of gold last year, making it the country's third largest gold refiner.

Jiangxi Province produced 2,797.31 kilograms of gold in the first two months this year, up 6.97 percent from the corresponding period last year. About 625.93 kilograms was sourced from gold mines, up 39.12 percent from last year and 2,171.38 tons came from nonferrous metals companies, up 0.29 percent.

Jiangxi Province's gold profits for the first two months of the year stood at RMB 22.67 million ($2.93 million), up 97.53 percent from last year, according to a statement by the Jiangxi Gold Administration Bureau.