Zijin Mining Buys Chifeng Jilong Gold for $2.64BN in Expansion Deal

China’s Zijin Mining has agreed to acquire a controlling stake in Chifeng Jilong Gold Mining for 18.26 billion yuan (US$2.64 billion), the companies announced Monday, marking the latest in a series of expansions for the country’s largest gold producer.

The deal, which will see Zijin Mining gain a 25.85 percent stake in Chifeng Gold, comes just two months after Zijin proposed a 28 billion yuan bid for Canadian Allied Gold, signaling a broader strategy of global expansion. The acquisition is structured in two parts, according to a filing with the Hong Kong Stock Exchange. Zijin Gold, a subsidiary of Zijin Mining, will purchase 242 million A shares from Li Jinyang, the controlling shareholder of Chifeng Gold, and Zhejiang Hanfeng Venture Capital at a price of 41.36 yuan per share – a 1.3 percent premium over the previous day’s closing price. Li Jinyang is the widow of Chifeng Gold’s founder, Zhao Meiguang.

Zijin will also subscribe to 311 million newly issued H shares of Chifeng Gold at HK$30.19 per share. Upon completion of the transaction, Zijin Mining will have effective control of Chifeng Gold and will be able to fully consolidate the company’s financials.

Chifeng Gold currently operates six gold mines and holds reserves of 583 tonnes of gold, according to Zijin Mining. The acquisition is expected to strengthen Zijin Mining’s position as a leading global gold producer.

News of the deal triggered a significant market reaction. Shares of Zijin Mining fell 4.7 percent to HK$32.6, although Chifeng Gold shares plummeted 24 percent to HK$31.88 before trading was halted for the noon break in Hong Kong.

The moves by Zijin Mining reach as Chinese gold miners are poised for a strong 2026, driven by increased deals and higher output, according to a recent Bloomberg report. China is also actively working to establish Hong Kong as a major gold trading hub, with efforts underway to involve both public and private miners and develop new market infrastructure, as reported by KITCO. The IndexBox outlook for Chinese gold mining in 2026 anticipates growth, but also highlights global challenges facing the industry.