Barrick-China gold deal off (2)

The deal, if successful, would be China's largest overseas gold mine takeover and double China's gold reserve, the report said.

China National Gold decided to call off the talks because it disagreed with Barrick Gold on a number of major issues including taxes, pending legal actions, the amount of resources owned by African Barrick and the stripping of debts, news portal sina.com reported Tuesday, citing an unnamed executive at China National Gold.

Barrick Gold has struggled to meet production targets in recent years due to rising costs and operational setbacks, and African Barrick cut its 2012 production forecast in October, the BBC reported Tuesday.

"Chinese companies need to be prudent when it comes to investing in large projects overseas. The failure to reach a deal is not necessarily a bad thing. Through the negotiations, China National Gold has had the opportunity to accumulate experience and train its professionals," Zhang Yongtao, vice president of the China Gold Association, told the Global Times Wednesday.

"China has already had successful cases of overseas gold mine acquisition. Many Chinese gold companies have the financial strength to acquire overseas mines, but they lack experience," Zhang said.

Zijin Mining Group Co acquired more than 50 percent of stake in Australia's Norton Gold Fields in August, and Shandong Gold is in talks aimed at purchasing a 51 percent stake in Australia's Focus Minerals.

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