• Zijin acquires Chifeng Jilong Gold Mining for $2.64 billion to expand its West African gold portfolio.

• The group strengthens its presence in Ghana after a $1 billion Akyem acquisition in 2025.

• Rising gold prices and strong regional production growth support Zijin’s expansion strategy.

Zijin Gold announced last week that it acquired fellow Chinese firm Chifeng Jilong Gold Mining for 18.26 billion yuan ($2.64 billion). The company expects the deal to confirm Zijin Mining’s position as China’s leading gold producer. Moreover, the acquisition will strengthen the group’s foothold in West Africa.

Following its April 2025 acquisition of the Akyem mine for about $1 billion, Zijin will add another Ghanaian gold asset, Wassa, to its portfolio. Chifeng Jilong has owned Wassa since January 2022 through a $470 million acquisition. The mine holds mineral resources of 3.5 million ounces and offers at least six years of exploitable reserves.

At the same time, Zijin is nearing completion of its acquisition of Allied Gold, a Canadian company operating three mines in West Africa.

A Dynamic Gold Hub

Zijin Mining’s interest in West African gold assets reflects a broader trend of rising investment in the region. According to Australia-based Aurum Resources, West Africa recorded the fastest global gold production growth at 127% between 2010 and 2022. The region outpaced major producers such as China, Russia, and the United States.

However, resource nationalism in countries such as Mali and Burkina Faso is raising investor concerns. Nevertheless, other countries remain favorable to mining investment.

Côte d’Ivoire, Ghana, and Guinea continue to attract investors. Zijin holds indirect exposure to Guinea through a minority stake in Predictive Discovery. The Australian firm is developing the Bankan project, which could produce 250,000 ounces of gold annually for more than 12 years.

Investors view West Africa as a dynamic gold hub due to favorable taxation, regulatory stability, and the ability to rapidly develop mining projects.

Zijin is factoring these advantages into its portfolio expansion strategy. The company is targeting gold production of 140 tonnes by 2028, up from 68 tonnes in 2023. Assets under acquisition in West Africa are expected to play a key role in achieving this target.

At Akyem, Zijin plans to produce 8.5 tonnes of gold in 2026, compared with 5.1 tonnes in 2025. In addition, the company could soon rely on the Sadiola gold mine in Mali.

Allied Gold currently owns Sadiola and plans to hold a shareholder meeting this week to approve the transaction with Zijin. The company is expanding the mine to raise annual production to between 200,000 and 230,000 ounces. This upgrade represents a 17% to 30% increase compared with 2023 output.

Risk Factors

Beyond operational and regulatory conditions, Zijin is benefiting from rising gold prices. Prices increased by about 60% in 2025 and reached record levels above $5,000 per ounce in the first quarter of 2026. Higher prices could accelerate returns on recent acquisitions.

However, risks remain in the region. In Ghana, authorities are considering replacing a fixed 5% royalty on gold with a progressive system that could reach 12%, indexed to prices. This proposal has triggered opposition from major mining companies and several diplomatic missions, including China’s.

For Zijin, which is expanding its presence in Ghana, such fiscal changes could reduce profitability at Akyem and potentially Wassa. As a result, the reform could increase the overall cost of its expansion strategy.

In Côte d’Ivoire, authorities are also revising the mining code. Proposed changes aimed at increasing the sector’s contribution to the economy could affect the Agbaou and Bonikro mines, which Zijin is targeting through the Allied Gold acquisition.

Therefore, Zijin’s geographic diversification across Central Asia, Russia, and Latin America provides a strategic hedge against rising exposure to West Africa.

This article was initially published in French by Emiliano Tossou

Adapted in English by Ange J.A de Berry Quenum