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China snags Canadian Gold Mining Company in $5.5B Takeover

China snags Canadian Gold Mining Company in $5.5B Takeover

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by

Aaron Day
in

Media reports a $5.5 billion acquisition of Canadian-listed Allied Gold by China’s Zijin Mining, a partially state-owned firm, announced on January 26, 2026, framing it as rapid fallout from Prime Minister Mark Carney’s January 16 announcement of a new Canada-China “strategic partnership” during his Beijing visit.

  • Allied Gold’s gold assets are located in Africa—specifically Ethiopia, Mali, and Côte d’Ivoire—rather than Canada, meaning the deal transfers overseas operations despite the company’s Toronto listing and raising questions about Canadian regulatory oversight on foreign takeovers.
  • Reactions in replies express national security concerns over Chinese control of critical minerals, though some note the transaction’s arm’s-length nature and lack of direct government involvement, highlighting ongoing debates on balancing economic ties with geopolitical risks.

Allied Gold Corporation (a Canadian-listed gold producer, recently acquired by China’s Zijin Mining in a ~C$5.5 billion deal announced January 26, 2026) focuses its operations entirely on Africa, with no producing or development assets in Canada itself.

Its portfolio consists of producing mines and a key development project in three countries: Mali, Côte d’Ivoire (Ivory Coast), and Ethiopia.The company’s strategy emphasizes low-cost production growth, expansions at existing operations, synergies (e.g., the “Côte d’Ivoire Complex”), and exploration upside, targeting up to ~800,000 ounces of annual gold production by around 2029 post-expansions.Here are the main African assets based on public disclosures, technical reports (NI 43-101), and recent updates:

Mali

  • Sadiola Mine (open-pit gold mine in the Kayes region, West Africa; includes the nearby Diba satellite deposit ~15 km south, integrated for processing).
    • Status: Producing (one of Allied’s primary producing assets).
    • Key details: A long-life, world-class gold system with ongoing exploration success, resource expansion, and phased expansions (Phase 1 already contributing; Phase 2 modular expansion in progress for capital-efficient growth).
    • It accounts for a significant portion of Allied’s output (historically around half of recent annual production figures).
    • Government holds a minority interest (20%).

Côte d’Ivoire

  • Bonikro Mine (open-pit gold mine in the Oumé region; includes related deposits like Hiré).
    • Status: Producing.
    • Key details: Stable production targeted at ~100,000 ounces annually in recent guidance/outlooks; part of the “Côte d’Ivoire Complex” for shared infrastructure and synergies.
    • Government/minority shareholders hold ~10.1% interest.
  • Agbaou Mine (open-pit gold mine in the same region).
    • Status: Producing.
    • Key details: Consistent output, with guidance for not falling below ~87,000 ounces annually; opportunities to increase oxide feed from nearby exploration (e.g., Hiré area) to lower costs.
    • Government/minority shareholders hold 15% interest.
  • These two mines form the Côte d’Ivoire Complex, positioned as a growing mining and processing hub in a gold-rich area.

Ethiopia

  • Kurmuk Gold Project (advanced development project in the Benishangul-Gumuz region, western Ethiopia; covers Dish Mountain and Ashashire deposits plus a large ~1,450 km² exploration area).
    • Status: Development/under construction (not yet producing; first production targeted for H2 2026 or similar timelines in prior updates).
    • Key details: Significant milestones achieved (e.g., power purchase agreement with Ethiopian Electric Power for reliable, low-cost renewable energy; mining contracts awarded; exploration upside at targets like Tsenge to expand resources).
    • Designed as a low-cost future producer with multi-decade potential; government entitled to 7% equity participation.
    • Considered a “generational asset” with substantial reserve/resource growth potential.

Allied’s overall portfolio (as of late 2024/early 2025 data) supported ~375,000–400,000 ounces of annual production from the operating mines, with 2P reserves around 11.2 Moz Au and measured/indicated resources ~16 Moz Au. The assets are in mining-friendly African jurisdictions, though they carry typical emerging-market risks (e.g., geopolitical, operational in Mali).

For the most precise reserves/resources, production figures, or updates post-acquisition, refer to Allied’s NI 43-101 technical reports (e.g., for Sadiola 2023, Kurmuk 2023, Bonikro/Agbaou 2023) or Zijin’s post-deal disclosures.

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