Two informed sources revealed that China’s Zijin Mining (SHA: 601899) has emerged as the strongest contender to acquire Barrick Gold Corp’s (TSX: ABX) Tongon gold mine in northern Ivory Coast, with the potential transaction value reaching $500 million. Barrick holds an 89.7% stake in the Tongon mine, with the Ivorian government owning 10% and local investors holding the remaining 0.3%.
The sources stated that Barrick has appointed Canada’s TD Securities and Australia’s Treadstone Resource Partners as advisors for the mine sale. The mine produced 148,000 ounces of gold in 2024, valued at $504 million at current prices. Due to declining resources, Barrick expects the mine to enter care and maintenance by 2027.
Barrick, the world’s third-largest gold producer, is strategically shifting its focus toward high-margin, long-life assets, particularly copper projects and strategic operations in Africa and the Middle East, while gradually exiting gold production. Recently, the company sold its 50% stake in Alaska’s Donlin gold project for $1 billion and agreed to divest its Hemlo mine in Canada. Additionally, Barrick was forced to suspend operations at its flagship Loulo-Gounkoto complex in Mali after the country’s military government blocked exports, detained staff, and confiscated three tons of gold amid a dispute over mining rights.
Zijin Mining, a major Chinese gold and copper producer, has been expanding aggressively across South America, Central Asia, and Africa. In July last year, the company acquired a 9.9% stake in Canada’s Montage Gold, which is developing the Koney gold project in Ivory Coast. Subsequently in October, Zijin spent $1 billion to acquire Newmont Corp’s (NYSE: NEM) Akyem gold mine.
This bidding effort coincides with accelerated African investments by Chinese companies. Since 2010, Chinese state-owned enterprises have invested over $50 billion in African mining projects, primarily targeting bauxite, copper, cobalt, and gold resources.
