In a statement to the Hong Kong bourse on Monday, Zijin said the acquisition would boost its gold reserves and production capacity, helping it achieve its goal of becoming one of the world’s top three gold producers by 2028, up from its current ranking of sixth.
Deal Expected to Boost Global Position Ahead of Listing
Zijin Mining said the acquisition would “significantly enhance the asset scale, profit level and global industry position of Zijin Gold International,” the unit it plans to list in Hong Kong.
The company has been reorganising its overseas gold assets under Zijin Gold International, which was established in 2007. Two months ago, Zijin announced that move would allow it to “create greater value” for shareholders through an expected revaluation of its gold holdings and operations.
Details of the Kazakhstan Acquisition
The purchase involves the Raygorodok gold mine project in northern Kazakhstan, which Zijin is acquiring from Cantech for US$1.2 billion. Cantech is majority-owned (65%) by V Group International, one of Kazakhstan’s largest equity investment firms, and is also a unit of US-based private equity firm Resource Capital Funds.
At the end of 2023, the Raygorodok project reported net assets of US$291 million and generated a net profit of US$202 million on revenue of US$473 million.
Under its original development plan, using a gold price of US$1,750 per ounce, the mine had economic ore reserves of 94.9 million tonnes. With an average grade of one gram per tonne, the site could ultimately yield around 100.6 tonnes of gold. Zijin said there is “clear potential” to expand resources and production by optimising pit designs and assuming higher gold prices.
Production Targets and Cost Efficiency
Last year, the Raygorodok mine produced six tonnes of gold at an average production cost of US$796 per ounce (excluding non-cash expenses like depreciation). Zijin Mining itself produced 73 tonnes of gold in 2024.
In May, Zijin said it aims to lift annual gold production to between 100 and 110 tonnes by 2028—a 36% to 50% increase over 2024 levels. The company believes the Kazakhstan project will play a key role in hitting that target.
The deal is expected to close by the end of September, subject to regulatory approvals in China and Kazakhstan.
Gold Market Context and Price Outlook
Zijin’s acquisition comes amid a strong gold price environment. The London Bullion Market Association reported a 26% surge in spot gold prices in 2024—the metal’s biggest annual gain since 2010.
Prices have continued to climb in 2025, with spot gold trading at US$3,281.65 per ounce in early Asia trading on Monday. Asset manager State Street Global Advisors recently projected that gold will likely stay above US$3,000 per ounce for the rest of the year, and could even test US$4,000 if trade tensions escalate, driving inflation and slowing global growth.
Expanding Global Footprint
Zijin Mining already operates gold mines in Colombia, Peru, Australia, Serbia, Tajikistan, Kyrgyzstan, Papua New Guinea, Ghana, Suriname, and Guyana, demonstrating its broad international reach.
Despite news of the acquisition, Zijin’s Hong Kong-listed shares closed nearly 2.2% lower on Monday at HK$20.20.