Zijin Mining Group Adr Class H (OTCMKTS: ZIJMY) (FRA: FJZ) is expanding its international portfolio by acquiring a massive gold mine in Kazakhstan for US$1.2 billion. The site produced six tonnes of gold last year and is considered to be one of the most high-tech in Central Asia.
In a statement provided to the Hong Kong Stock Exchange on Monday, the major Chinese operator said obtaining the Raygorodok operation from Cantech S.à.r.l. would position the company among the world’s top three gold producers. Ascending from sixth place and commanding that stature will be possible within three years, Zijin explained.
The site is comprised of two major open pits at a depth of 130 metres that sit about two kilometres apart. It is expected to have 16 years of production life remaining and will produce about 5.5 tonnes per annum in the next few years. Once optimization measures have been taken by Zijin, that number could potentially be boosted to 10 tonnes of gold annually.
Operational efficiencies will become apparent from the mine’s proximity to other operations in the region, the gold and copper producer highlighted in its filing on the matter.
“The Raygorodok Gold Mine can generate favourable synergies with the Jilau/Taror gold mines in Tajikistan and the Taldybulak Levoberezhny gold mine in Kyrgyzstan,” Zijin stated.
The deposit’s history and initial exploration work dates back to 1996. Production started ramping up significantly in 2015. A few years later following additional exploration, the site’s estimated reserves tripled to 108 tonnes. Additionally, a new process plant valued at US$420 million started operating at the site in 2022, boosting output substantially.
The acquisition is expected to close by the end of September pending regulatory approvals.
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Zijin lines up IPO for international subsidiary
On Jun 30, the gold major also announced that shareholders have approved the company’s application to list its global mining subsidiary on the Hong Kong stock market. This initial public offering could potentially raise up to US$2 billion. The company announced its intention to do so in April.
Zijin currently manages a portfolio of production assets in South America, Africa, Oceania and Central Asia. Raygorodok resides in the future public entity’s area of operations.
In addition to its robust group of Chinese mining assets, Zijin currently operates gold mines in Suriname, Peru, Colombia, Tajikistan, Kyrgyzstan, Serbia, Ghana, Australia and Papua New Guinea. The Akyem gold mine, acquired from Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM) in April, is the latest addition.
In 2024, Zijin reported a 52 per cent year-over-year net profit spike at US$4.5 billion — largely driven by the high price of gold.
The company’s market cap is sitting at approximately US$67.4 billion. As the Fujian Provincial People’s Government in China currently holds a 24 per cent stake, Zijin is a state-backed operator.
Gold Miners: AISC Margin Leaders Q1/2025 ($/oz) 🪙💰
1. Lundin Gold: 2,172 👑
2. G Mining Ventures: 1,806
3. Dundee Precious Metals: 1,760
4. Agnico Eagle Mines: 1,708
5. Zijin Mining: 1,700
6. Endeavour Mining: 1,654
7. Kinross Gold: 1,502
8. Northern Star… pic.twitter.com/XPgjcJ6rb4— Oliver Groß (@minenergybiz) May 15, 2025
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