Zijin Mining’s ¥28 Billion RMB ($3.88 Billion USD) Acquisition of Allied Gold: A Strategic Play in African Gold Mining

In January 2024, Chinese mining giant Zijin Mining (Zijin Kuangye 紫金矿业) made a major move that signals serious ambitions in the global gold market.

The company’s controlled subsidiary, Zijin Gold International Limited (Zijin Huangjin Guoji 紫金黄金国际), agreed to acquire 100% of Allied Gold Corporation for approximately ¥28 billion RMB ($3.88 billion USD).

Here’s what this means for the mining industry, investors, and anyone tracking major Chinese tech and resource plays.

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The Deal: What Zijin Mining Is Actually Buying

Let’s break down the specifics of this acquisition.

On January 26, Zijin Mining announced that its subsidiary (which holds an 85% stake in Zijin Gold International) signed an “Arrangement Agreement” with Allied Gold Corporation.

The terms:

• Cash price per share: 44 CAD per share
• Total deal value: 5.5 billion CAD
• USD equivalent: approximately ¥28 billion RMB ($3.88 billion USD)
• Target: All issued ordinary shares of Allied Gold

This is a full equity acquisition, meaning Zijin Mining is taking complete control of the company and all its assets.

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What Zijin Mining Gets: A Portfolio of African Gold Assets

The real value here isn’t just in the current operations—it’s in the gold production pipeline Allied Gold controls across Africa.

Current Operating Mines

Allied Gold’s core assets include:

• Sadiola Gold Mine in Mali – currently operational and generating revenue
• Bonikro and Agbaou gold mines in Côte d’Ivoire – producing as part of a gold mine complex

These aren’t experimental projects. They’re active, producing operations already feeding gold into the market.

Future Growth: The Kurmuk Mine

But here’s where things get interesting for long-term value.

Allied Gold also owns the Kurmuk Gold Mine in Ethiopia, which is scheduled to come online in the second half of 2026.

This is a major growth catalyst for the acquisition, which we’ll explain below.

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The Numbers: Gold Resources and Production Capacity

Here’s what makes this deal strategically interesting.

Current Resource Base

As of the end of 2024, Allied Gold possessed:

• Total gold resources: 533 tons
• Average grade: 1.48 grams per ton

These numbers matter because they indicate how much gold is actually in the ground and how concentrated it is.

Production History and Projections

Let’s look at the production trajectory:

• 2023: 10.7 tons of gold produced
• 2024: 11.1 tons of gold produced
• 2025 projection: 11.7 to 12.4 tons
• 2029 projection: 25 tons annually

That’s a significant jump—more than doubling production by 2029.

The growth is driven by:

• Sadiola project expansion – scaling up existing operations
• Kurmuk project completion – bringing online the new Ethiopian mine in 2026

From Zijin Mining’s perspective, they’re not just buying current production—they’re buying a growth story with clear production milestones through 2029.

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Why This Matters: Strategic Context for Chinese Mining Companies

This acquisition fits into a larger pattern of Chinese companies securing hard assets and commodity supply chains.

Gold is a strategic commodity with applications in:

• Electronics and semiconductor manufacturing
• Jewelry production
• Financial reserves and wealth preservation
• Industrial applications

By acquiring Allied Gold’s African operations, Zijin Mining is:

• Securing a stable supply of gold without relying on spot market purchases
• Diversifying its portfolio across multiple geographic regions (Mali, Côte d’Ivoire, Ethiopia)
• Gaining exposure to production growth through 2029 and beyond
• Building long-term commodity reserves in a resource-constrained world

This is classic vertical integration in the mining sector—controlling the supply chain from extraction to whatever comes next.

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The Regulatory Gauntlet: What Needs to Happen for This Deal to Close

• Allied Gold Shareholders (Meeting Approval)
• Superior Court of Justice of Ontario, Canada
• National Development and Reform Commission (NDRC) – China
• Ministry of Commerce (MOFCOM) – China
• Investment Canada Act (ICA) Review
• Local mining jurisdiction approvals (Mali, Côte d’Ivoire, Ethiopia)

Here’s the critical part that investors and deal-watchers need to understand.

This acquisition is not finalized yet.

Completion remains subject to several regulatory and shareholder approvals:

Required Approvals

• Allied Gold shareholder meeting approval – the company’s existing shareholders must vote to approve the deal
• Superior Court of Justice of Ontario, Canada approval – Canadian court oversight is required (typical for major M&A in Canada)
• Government approvals from China – Chinese regulatory bodies need to clear the foreign investment
• Canadian regulatory approvals – likely including industry regulators and potentially foreign investment review
• Other jurisdictional approvals – any other countries where Allied Gold operates or has material interests

This is a multi-jurisdictional deal with moving parts across at least three continents (Africa, North America, and Asia through China).

Translation: Don’t assume this is done until all these boxes are checked.

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Investment Takeaways: What This Signals

For investors, founders, and market observers, this deal reveals several important patterns:

1. Chinese capital is aggressively pursuing commodity assets

A ¥28 billion RMB ($3.88 billion USD) investment signals serious intent from Zijin Mining to lock in long-term commodity supply.

2. Africa remains a critical mining frontier

Mali, Côte d’Ivoire, and Ethiopia are three of Africa’s most active gold-producing regions, and companies are still finding significant deposits there.

3. Production growth timelines matter

The projection to 25 tons by 2029 makes this an attractive M&A target—it’s not just today’s cash flows, it’s tomorrow’s production capacity.

4. Regulatory complexity is real

Cross-border mining acquisitions require approvals from multiple governments, courts, and regulatory bodies—there’s meaningful execution risk here.

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The Bottom Line on Zijin Mining’s ¥28 Billion RMB Gold Acquisition

Zijin Mining’s proposed acquisition of Allied Gold is a strategic play for commodity security and long-term production growth.

At ¥28 billion RMB ($3.88 billion USD), the company is paying for:

• Current gold production across three African countries
• 533 tons of proven gold resources
• A clear path to doubling production by 2029
• Diversified geographic exposure in stable mining jurisdictions

However, the deal still needs to clear regulatory hurdles across multiple countries before it becomes official.

Keep an eye on the regulatory approval timeline—that’s where the deal could face real friction or delays.

For now, this remains one of the most significant gold sector M&A announcements involving Chinese capital in recent memory, and it’s worth tracking as the approval process unfolds through 2024 and beyond.

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References

• Zijin Mining: Subsidiary Proposes to Acquire 100% Equity of Allied Gold for 5.5 Billion CAD – Jiemian News
• Latest Internal News and Financial Reports – Zijin Mining Group
• Investor Relations and Asset Overview – Allied Gold Corporation