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Chinese mining giant Zijin Mining Group has reportedly taken the lead in negotiations to acquire the Tongon gold mine from Canadian-based Barrick Gold Corporation, a move that could see the aging West African asset sold for up to $500 million. The development highlights Zijin’s continued expansion across Africa and marks a significant step in Barrick’s ongoing strategic realignment.
Tongon Mine Sale: A Strategic Shift for Barrick
Located in the north of Ivory Coast, the Tongon gold mine produced 148,000 ounces of gold in 2024, valued at approximately $504 million based on current market prices. Despite its output, the mine is nearing the end of its productive life, with Barrick projecting it may enter a care-and-maintenance phase by 2027 due to dwindling reserves.
Barrick, currently the world’s third-largest gold producer, has been shifting its focus toward long-term, high-margin projects and copper assets, particularly in Africa and the Middle East. The company has recently exited several legacy operations, including a $1 billion divestment of its stake in the Donlin Gold Project in Alaska and the sale of its Hemlo mine in Canada.
Two financial advisory firms, Canada’s TD Securities and Australia’s Treadstone Resource Partners, have been engaged to guide the sale of Tongon. While Barrick has not officially commented on the reports, insiders suggest Zijin is the preferred bidder based on its financial strength and global track record.
Zijin’s Expanding African Footprint
Zijin Mining, already a dominant force in the global mining industry, has significantly broadened its international presence in recent years. The company has made strategic acquisitions in South America, Central Asia, and across Africa. In West Africa alone, Zijin acquired a nearly 10% stake in Montage Gold in 2024, a firm developing the Koney Gold Project in Ivory Coast, and later spent $1 billion purchasing the Akyem gold mine from Newmont.
Since 2010, Chinese state-owned and private enterprises have poured over $50 billion into African mining projects, with gold, copper, cobalt, and bauxite being major targets. Zijin’s potential acquisition of Tongon underscores Beijing’s sustained interest in securing vital mineral resources on the continent.
Competition and Political Dynamics
Though Zijin appears to be leading the bid, sources indicate that a local Ivorian firm, whose identity remains undisclosed is also vying for the mine. The Ivorian government reportedly prefers a joint venture model that includes local participation, but sources suggest Zijin may be leaning towards full ownership rather than forming a partnership.
Officials from Ivory Coast’s Ministry of Mines declined to provide further details on the sale or clarify the government’s conditions for approval. Industry insiders anticipate that a final decision on the winning bidder could be announced later this month, pending regulatory clearance. However, delays or a collapse of the deal remain possible.
Barrick’s Regional Challenges
Barrick’s operations in West Africa have faced recent turbulence. In Mali, gold exports were halted at its flagship Loulo-Gounkoto complex after the military-led government detained staff, seized nearly three tonnes of gold, and clashed with the company over new mining laws. This disruption further reinforces Barrick’s urgency to streamline its African portfolio and reduce exposure to political risk.
Notably, earlier this month, a military helicopter was reportedly used to transport gold from the Loulo-Gounkoto site, raising eyebrows across the industry. The action followed a controversial court ruling allowing the government to liquidate gold assets to finance local operations.
Ownership Structure and Next Steps
Barrick currently holds an 89.7% stake in the Tongon mine, with the Ivorian government controlling 10% and a small group of local investors owning the remaining 0.3%. If Zijin’s bid is successful, it could further entrench China’s influence over West Africa’s gold sector and reshape the future of mining investment in the region.
The outcome of the Tongon transaction will be closely watched, not only by stakeholders within Ivory Coast but also by broader markets monitoring China’s growing dominance in global mineral supply chains. As Zijin presses forward, the balance between foreign capital, local interests, and geopolitical considerations will play a crucial role in determining the final shape of the deal.