Zijin Gold International plans to pay C$44 per share ($4 billion total) for the assets to produce 400,000 ounces in 2025.
The Kalmuk project in Ethiopia is the country’s first commercial gold mine and is expected to produce 290,000 ounces per year.
Mali’s Sadiola mine is targeting annual production of 400,000 ounces by 2029 following recent expansion and a new mining code.
China’s Zijin Mining has finalized its $4 billion all-cash acquisition of Canada’s Allied Gold Corporation, strengthening its grip on African gold production. The deal is expected to close by late April 2026 and was announced on January 26 as gold prices soared above $5,000 an ounce. At a time when Western governments are focused on mitigating supply chain risks, the deal places three strategic African businesses under Chinese control, highlighting the widening gap between rhetoric and reality in African resource investment.
For Africa’s gold-producing countries, the acquisition provides immediate capital and operational expertise to expand production across Mali, Ivory Coast and Ethiopia, but also concentrates ownership of key mineral assets in Chinese hands as gold moves from a commodity to a strategic reserve. Chinese companies already control more than 8% of Africa’s mining output, and the deal accelerates a trend that African governments have only begun to address through resource nationalist policies.
Three countries’ gold portfolios come under Chinese control
Zijin Gold International will pay C$44 per share (a 5.4% premium) to secure the Sadiola mine in Mali, the Boniklo and Agbau operations in Ivory Coast, and the Krumuk project under construction in Ethiopia. These assets produced approximately 400,000 ounces in 2025, with expansion plans targeting 800,000 ounces per year by 2029.
The highlight is Mali’s Sadiola mine, which will produce 171,000 oz in 2024 and completed its first expansion in December 2025. The mine is targeting annual production of 400,000 ounces starting in 2029. Allied Gold has negotiated favorable terms under Mali’s new 2023 mining law, which allows for up to 35% government ownership. Chinese capital could accelerate growth for Mali, which aims to increase mining’s contribution to GDP from 10% to 20%, but questions arise about the returns that come with the ownership transition.
Ivory Coast’s Boniclo and Agbau mines produced 38,808 ounces in the first quarter of 2025, with a target of 175,000 to 195,000 ounces per year. The government holds a 10% stake, ensuring continued revenue participation under Chinese management.
Ethiopia’s first commercial gold mine changes hands
The most strategically important asset is the Kurumuk project in Ethiopia’s Benishangul-Gumuz region, which is scheduled to begin production in mid-2026 as Ethiopia’s first large-scale commercial gold mine. With a capital investment of $500 million, Krumuk is expected to produce 290,000 ounces per year for the first five years at an all-in sustaining cost (AISC) of just $950 per ounce. Zijin Chairman Hongfu Lin described Sadiola and Kurumuk as “generational assets that are expected to provide decades of production,” highlighting that Chinese miners see long-term value in these African operations.
For Ethiopia, ownership will shift from Western-backed Allied Gold to Chinese-led Zijin as the country develops mining as an alternative source of income. While Chinese ownership could accelerate development through additional capital, it also means that Ethiopia’s mining sector will emerge with significant Chinese influence from the outset.
Record gold prices drive strategic consolidation
Zijin’s acquisition coincides with unprecedented gold market trends. Geopolitical tensions and central bank buying caused gold to soar above $5,100 an ounce in late January 2026. The metal rose about 65% in 2025, creating a market where large producers prefer acquiring proven assets over riskier developments.
For African economies, record prices should lead to increased royalties. But ownership is concentrated in Chinese hands because the Chinese government treats gold as a strategic reserve rather than a commodity. China’s central bank has been a net buyer for 14 consecutive months, and Goldman Sachs expects purchases to average 60 tonnes per month in 2026.
Impact on African investment
The acquisition of Allied Gold is the largest of Zijin’s eight major gold deals since 2020, with the company rising from the world’s 13th largest producer in 2019 to now number 6. China’s mining investment in Africa will reach $11 billion in 2023, demonstrating deliberate resource acquisition as Western governments focus on diversification.
For African policymakers, this agreement highlights the asymmetry of mining investment. While Chinese state-backed companies benefit from long-term mandates that allow for favorable financing and large premiums, Western investment increasingly goes through development finance institutions that offer smaller amounts of support. This financing gap will limit Africa’s bargaining power if Chinese buyers enter with all-cash offers.
