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Zijin Mining Group (601899.SH, 2899.HK) announced on March 23 that it has taken control of Chifeng Jilong Gold Mining (600988.SH, 6693.HK) in a transaction valued at approximately 18.26 billion yuan ($2.64 billion), marking a major shift in China’s domestic gold mining landscape.
The company executed the deal through a combination of an A-share block transfer and a targeted H-share private placement. The move further strengthens Zijin’s position as a dominant force in the global gold sector.
According to the announcement, Zijin Gold, a wholly-owned subsidiary of Zijin Mining, entered into two key agreements on March 22.
The first was a share transfer agreement to acquire 242 million A-shares of Chifeng Gold from the company’s controlling shareholder Li Jinyang and her concert party Zhejiang Hanfeng, at a price of 41.36 yuan per share. That portion of the deal is valued at approximately 10.01 billion yuan. The second agreement is a subscription for 311 million newly issued H-shares of Chifeng Gold under a specific mandate, priced at HKD 30.19 per share. The subscription is valued at approximately HKD 9.39 billion, or about 8.25 billion yuan.
Zijin said the transaction does not constitute a connected transaction or a major asset restructuring and does not require shareholder approval, though it remains subject to certain conditions precedent.
Prior to the transaction, Zijin held a 0.86% stake in Chifeng. Upon completion, the combined holdings of Zijin’s wholly-owned subsidiaries will reach approximately 25.85% of Chifeng’s enlarged share capital, giving Zijin effective control and allowing it to consolidate Chifeng’s financial statements.
Zijin Mining, already China’s largest gold producer, reported attributable gold output of 89.6 tonnes in 2025. Chifeng Gold produced approximately 14.4 tonnes of gold last year from operations in China, Ghana and Laos. With the acquisition, Zijin’s attributable gold production is set to increase by a corresponding amount, pushing its total annual gold output beyond 100 tonnes.
“Zijin will assume operational control of Chifeng, further solidifying its position as China’s top gold miner,” Bloomberg Intelligence analysts said in a note. They added that Chifeng is expected to benefit from improved operational efficiency under Zijin’s management. The deal is also expected to widen the production gap between Zijin and its domestic peers, including Shandong Gold.
The move is the latest in Zijin’s ongoing strategy of expanding through acquisitions. It follows Zijin Gold’s $4 billion purchase of Canada-listed Allied Gold, underscoring the company’s commitment to resource growth through M&A. The acquisition comes at a time when gold prices, while having pulled back from record highs above $5,000 per ounce in late February, remain elevated above $4,500. Persistent geopolitical tensions and safe-haven demand continue to underpin the market.
Meanwhile, many of the world’s largest gold miners are facing declining output and thinner project pipelines. In contrast, Chinese gold miners led by Zijin are leveraging their capital strength and operating expertise to accelerate global resource consolidation and expand their market presence.
For Chifeng Gold, joining Zijin’s portfolio is expected to bring advantages in financing costs, operational management, and technical support. Chifeng’s assets are located in China, Ghana and Laos — regions that align well with Zijin’s existing footprint in Africa and Southeast Asia, offering potential for operational synergies.
