Zijin Mining to Acquire Chifeng Gold for $2.5 Billion

Zijin Mining Secures Controlling Stake in Chifeng Gold

Zijin Mining Group has announced a strategic plan to acquire control of Chifeng Gold in a transaction valued at approximately 18.26 billion yuan, or $2.5 billion. The deal will be executed through a combination of A share block acquisitions and an H share private placement.

Transaction Overview

Under the terms, Zijin's subsidiary, Zijin Gold, will purchase 242 million A shares and subscribe to 311 million newly issued H shares. This structure implies a valuation of approximately 11.6 times Chifeng's consensus price-to-earnings ratio for 2026.

Upon completion, Zijin Mining will hold 25.85% of Chifeng Gold’s enlarged share capital, securing control. This marks the company's second significant gold acquisition in two months, signaling aggressive expansion in the sector.

Strategic Impact on Gold Market

Chifeng Gold operates six gold mines and one multi-metal mine across China, Southeast Asia, and West Africa, with 583 tonnes of gold resources reported at the end of 2025. Zijin Mining noted significant exploration potential in Chifeng’s projects, particularly in Laos, Ghana, and China's Liaoning province.

Next Steps and Outlook

The deal is contingent upon approval from Chifeng Gold's shareholders and review by China’s Anti-monopoly Bureau of the State Administration for Market Regulation. This acquisition is set to further consolidate Zijin's position as a dominant force in the global gold market.

FAQ

Q: What is the total value of the Zijin Mining and Chifeng Gold deal?
A: The transaction is valued at approximately 18.26 billion yuan, equivalent to about $2.5 billion USD.

Q: What stake will Zijin Mining hold in Chifeng Gold after the acquisition?
A: Zijin Mining will hold a 25.85% controlling stake in Chifeng Gold’s enlarged share capital.

Q: What approvals are required for the transaction to proceed?
A: The transaction requires approval from Chifeng's shareholder meeting and China’s Anti-monopoly Bureau.

Source: Investing.com