Africa: Zijin acquires Allied Gold for $4 billion as payment grows in Africa
Zijin Mining is finalizing a $4 billion all-cash takeover of Allied Gold Corporation, tightening its grip on African gold production as prices rise.
Under the agreement, Zijin Gold International will pay C$44 per share, valuing Allied Gold at about $4 billion. The asset produced approximately 400,000 ounces in 2025 and is expected to reach approximately 800,000 ounces annually by 2029. The transaction is expected to close by late April 2026.
The deal puts mines in Mali and Ivory Coast, as well as the Kurmuk project under construction in Ethiopia, under Chinese control. The Sadiola mine in Mali produced 171,000 ounces in 2024 and is targeting 400,000 ounces annually by 2029 following expansion and changes to the country’s mining law. In Ivory Coast, the Bonnekro and Agbaou mine is expected to produce up to 195,000 ounces annually.
The Kurmuk project will become the first commercial gold mine in Ethiopia. Production is scheduled to begin in mid-2026, and is expected to produce about 290,000 ounces annually in its first five years.
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The acquisition was announced as gold prices rose above $5,000 an ounce, boosting interest in the African-based asset.
Key takeaways
The deal highlights how Africa’s gold sector is attracting capital during a period of record prices, while ownership shifts towards Chinese groups. Zijin already controls more than 8% of Africa’s mining production, and this deal accelerates that trend. For countries such as Mali and Ethiopia, the acquisition provides financing and operational capacity to expand production. Governments retain minority stakes and benefit from royalties, especially as prices rise. At the same time, the deal shows a gap between Western policy goals on supply chain diversification and actual investment flows. Chinese mining companies, backed by long-term financing, can make significant cash offers for production assets. As gold transitions from a commodity to a strategic reserve asset, African governments may face pressure to strengthen resource policies to balance capital flows with long-term control and revenue generation.
