Chinese gold mines cash in on high bullion prices 【Voice_over】 As the price of gold continues climbing, gold mines in China are celebrating with higher profits. In Lingbao City of central China’s Henan Province, a major gold bullion production hub, gold ore is mined, processed, and refined into gold concentrates, from which gold can be extracted. Staff from one mining company said gold concentrates have seen a 30 percent increase in prices this year, which leaves them enough profit margin to work even low-grade gold mines. 【Sound_bite】 Zhang Weidong, director, gold mining company: "Those low-grade mines have no economic benefits when the gold price is low. As the gold prices soar, we are taking this opportunity to tap some low-grade mining resources, which can also increase our total revenues." 【Voice_over】 Huge fluctuations in the prices of raw materials meanwhile, have forced many gold processing companies here to hedge their transactions. 【Sound_bite】 Peng Zuanshi, Deputy manager, gold processing company: "For example, if we purchase 50 tons of raw materials in a day, we will calculate the gold content in them and then sell them at the Shanghai Gold Exchange. This lets us lock-in selling prices as the trading prices of that day. So when our gold products are ready for sale, their prices won’t be affected by current gold prices." 【Voice_over】 Global gold prices have surged more than 30 percent this year, driven by geopolitical uncertainties, and just recently jumped more than one percent after the U.S. Federal Reserve cut interest rates by a quarter of a percentage point.