Zhaojin Mining Industries aims to increase gold production by acquiring smaller mines in Shandong province and obtaining more exploration rights, according to a report by its IPO sponsor.

Zhaojin, one of the largest gold miners in the Mainland, hopes to raise as much as US$300 million by launching its IPO as early as next month. It added that it wants to boost gold production by 11% next year and 38% in 2008 from acquisitions and internal growth.

Last year, the company produced 1.02 million ounces of gold, accounting for 14% of China's output. The Shandong-based Zhaojin, which has the second-largest reserves among listed mainland gold miners, invested RMB 644 million last year, of which RMB 410 million was used to buy two mines.

Zhaojin, which had reserves of four million ounces by June 30, operates four mines and one smelter in China. To broaden its production base, the company is likely to move its Shandong base.

UBS and Cazenove have been appointed to arrange the share offer. With Hong Kong regulators having approved of its listing application, the two-week of pre-marketing activities have already started Tuesday.